Investing vs Speculating

Investing vs Speculating

Speculation Can Be Hazardous to your Wealth

Are you an investor or a speculator?

Investors are interested in long-term asset growth. Speculators are interested in short-run trading profits. Investors focus on the quality of the asset or business they are invested in. Speculators are only focusing on the stock price, with little or no concern or awareness of the underlying business. Investors are involved in forecasting the yield on assets (businesses) over the life of the assets. Speculators are involved in the activity of forecasting the psychology of the market.

If you are an investor, we are on the same wave-length and have a basis for working together to create wealth. If you are a speculator you should be looking elsewhere. Speculation, for most people, will result in lower overall returns and therefore less accumulation of wealth over the long run.