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Understand the difference between investing and speculation from "summary" of The Intelligent Investor by Benjamin Graham
Investing and speculation are often used interchangeably in the financial world, but they are actually two very different activities with distinct goals and methods. Investing involves the purchase of assets with the expectation of generating income or profit over time through dividends, interest, or capital appreciation. It is a rational and systematic process based on thorough analysis and long-term thinking. Speculation, on the other hand, is the practice of buying and selling assets with the hope of profiting from fluctuations in price in the short term. Speculators are more focused on market trends, momentum, and price movements rather than the intrinsic value of the underlying asset. They often rely on emotions, rumors, and tips rather than fundam...
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