Investment is investment capital and gains from it, while speculation is investment opportunity and gains from it. Generally speaking, the front is to speak with real strength, and the back is outside the real kung fu. The former is conventional and the latter is unconventional. There is a need for premises and rules. Zhihu's guarantee of strength is the means to win. And strength is strength under rules, and cleverness is also a skill under strength. In practice, the market needs to give a very clear definition, and under this system, the investment logic can be guaranteed. Only in this way can cleverness appear. It is often used as a means of trading, and it can't be successful under normal circumstances. Next, look at the difference between specific investment and speculation.
1. Speculation is zero sum and investment is positive sum.
Zero sum means that when trading, some people turn losses into profits, and these processes do not produce wealth creation, but only the transfer of wealth. The process of investment is the process of increasing wealth. From this point of view, the futures market is dominated by speculation, and it is inevitable for futures to buy up and sell short. The purpose of futures trading is hedging, and the other is speculative futures traders who have no actual hedging needs. Here we can understand that owning the company's equity and bonds is an investment behavior, and shareholders like you can participate in the company's growth dividend, whether it is dividends or profit appreciation. Bonds are entitled to interest. You can also get rental income after owning real estate. These are all economic phenomena, not zero sum but positive sum, which can enter the investment category. What does stock financing mean? It also explains the basic definitions to help you better understand.
2. Speculate and buy things you don't understand. Investing is buying and selling what you have learned.
The same is to buy stocks. If you don't understand the company and operate purely according to market news, it is speculation. When you get the news, it's already out of date. After a detailed analysis of the company, and beyond the level of understanding the market, you have done your homework and can make decisions and plans in a planned way, then this is investment.
3. The difference between investment and speculation can also be said from the dimension of time.
This is one of the very big differences between the two, that is, investors need a long time. Many experts in the investment field have repeatedly said this sentence on many occasions. Nowadays, a more famous investor, also known as the stock god, says that if you are in "Twillingtoownastockfortenyears", don't teventinkabaaoutowningfortenminutes. If you are not going to buy a stock for at least ten years, then don't buy it. People who make money through short-term in the stock market are far lower than those who make money through long-term, and it is not long-term investors who are stuck in long-term holdings.
The difference between investment and speculation lies in what considerations investors make when making investment decisions, and they are often speculating rather than investing. We should distinguish the difference between the two, make rational decisions and know ourselves clearly.