Speculator vs Investor
"People who invest make money for themselves; people who speculate make money for their brokers.”
- Jason Zweig
An investor would carry out background research to:
1. Understand the company’s business.
2. Protect from losses by buying company stock when it’s undervalued.
3. Avoid succumbing to “herd mentality” by buying into hotly-tipped stocks.
The investor would do well, look forward to the assurance of adequate returns and safety principal.
1. A whispered “hot tip” that a particular stock will soon rise in value.
2. Without doing any research on the company, its past performance, or its dividend yield.
3. Media hype on the stock.
- Jason Zweig
INVESTORS
An investor would carry out background research to:
1. Understand the company’s business.
2. Protect from losses by buying company stock when it’s undervalued.
3. Avoid succumbing to “herd mentality” by buying into hotly-tipped stocks.
The investor would do well, look forward to the assurance of adequate returns and safety principal.
SPECULATORS
Speculators are akin to gambling which carries high risk. And if you consider the matter carefully, would you want to put your hard-earned income to such an uncertain outcome?
Normally, what they buy:1. A whispered “hot tip” that a particular stock will soon rise in value.
2. Without doing any research on the company, its past performance, or its dividend yield.
3. Media hype on the stock.
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