Investor and Speculation

The recent market downturn , has alarmed a lot of people about the financial markets , and clearly made a lot of us think about the difference between Investor and Speculators ? What do these words mean ? Lets have a closer look at the same .

Since decades , media has confused itself with the terms investors and speculators . But , lets look at what Respected Mr.Benjamin Graham had to say in his book Intelligent Investor written decades ago .

" Investment is one which , upon thorough analysis promises safety of principal , and a decent return , any other form is not an investment " . Return is a subjective matter depending upon the investor , and his level of content . This makes much more sense , as anything multiplied with zero eventually is zero at the end . So if principal isn't looked after .