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Investing vs. Speculating

Sunday, June 10, 2007

“For stock speculation is largely a matter of A trying to decide what B, C and D are likely to think – with B, C and D trying to do the same”. – Warren Buffet

“An Investment operation is one which upon, thorough analysis promises safety of principal and an adequate return. Operations not meeting these requirements are speculative” – Benjamin Graham

“Investment is an activity of forecasting the yield on assets over the life of the assets… speculation is the activity of forecasting the psychology of the market” – John Maynard Keynes

Whenever you rely on knowledge and know what you are doing it is termed as investing but Speculation is when you rely on luck and do not know what you are doing.

Posted by FR at 9:12 AM  

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Investment in equity shares has its own risks. Sincere efforts have been made to present the right investment perspective.The information contained herein is based on analysis and up on sources that we consider reliable. I, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and I am not responsible for any loss incurred based upon it.& take no responsibility whatsoever for any financial profits or loss which may arise from the recommendations given in this blog.