Tuesday, March 13, 2012

Casinos v. Finance

Chicago Billionaire investor Ken Griffin made the following remark in a fascinating interview with the Chicago Tribune:
Q. The casino. Why does that matter to you?

A. There is no great city in America that has a casino (downtown). And there's a reason for it. Casinos do not represent the values of a great city.

Q. There's some people who will see a lot of irony in that given the speculation that takes place in the financial industry.

A. I think there's a huge difference. Gambling is entertainment. We have great destinations for that, like Las Vegas. Just not in Chicago. Financial markets, what one often refers to as speculation, is really the force by which we move capital to the best and highest use. Investors who find the best businesses to put their money behind are rewarded for their research. It's not the prettiest way you can ever imagine to allocate capital. But if you look across the entire world, it's the best way we know to allocate capital.
There's much more to the discussion. The rest is here.


Self-referential note: There's more on casinos and finance here.

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