Speculating on Investment, Or Investing in Speculation?

[peristaltor]

The two words "investment" and "speculation" are to some synonymous, to others diametrically opposed. I find myself in the latter camp, though the confusions and conflations these two terms suffer makes it difficult to say the least even to articulate what about the differences should be emphasized. I guess I'll first let a supposed expert

Comments

[abomvubuso]

There are many things that distinguish investment from speculation. The levels of risk, the choice between short-term and long-term returns, and the proneness to create an actual new product that would be of some use to other people, etc.

[peristaltor]

There are many things that distinguish investment from speculation.

True, but there are too many people that would, for example, consider selling a stock short an investment. Done right, it is just about a sure thing; but it temporarily destroys value to be effective.

I see you're in real estate, a field fraught with those who blur the lines between the two terms. ;-)

[abomvubuso]

Yebo, tell me about it... I often hear people saying things like "I'm prepared to do some good investment in this or that country", when they merely mean do some short-term spectulation. But that might be just semantics. The end result is what matters.

[peristaltor]

The end result is what matters.

Exactly. I'm coming to the conclusion that one must have little to no regard for the resale value of the investment for it to be less than speculation. It's an extreme position, I know, but I hope to flesh out my rational in the near future.

[peristaltor]

Completely off topic, ever heard the band KMFDM? How about Rammstein? If you like Tool. . . .

[abomvubuso]

I'm a big Tool fan and I also like Rammstein a lot. Never heard of KMFDM before. Might have to download some stuff :)