The difference between speculation and investing
Most people think they are “investing” — they are only speculating with longer patience.
Speculation =
– Buying because you expect someone will pay more later
– Narrative-driven, price-driven, fast conviction, fast exit
– Works only if you time it well
Investing =
– Buying because the asset produces value or holds structural demand
– Thesis-driven, fundamentals-driven, slow conviction, planned horizon
– Works even if timing is imperfect
Speculation is not wrong. Confusing it with investing is.
You can only manage what you can correctly name.