Speculators vs Investors

Not all people in the stock market are investors. Benjamin Graham, the father of value investing, believed it was crucial for people to determine whether they were investors or speculators.

The difference is simple: an investor looks at a stock as a business and as an owner of the business, while the speculators views himself as playing expensive pieces of paper. For the speculator, value is only determined by what someone will pay for the piece of paper.

To paraphrase Graham, there is intelligent speculating as well as intelligent investing. In short, multiple ways to skin the cat and make money. Just be sure you understand what you are doing and what you are good at.

P.S. I dont hate cats, so dont hate me with my cat metaphor!

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