Investment versus

Speculation:
Results to Be
Expected by the
Intelligent Investor
Name- Devkaran Singh Uppal
Anmol Kang
 Introduction
Financial backers and brokers go ahead with reasonable plans of action as they endeavor to benefit
from exchanges they make in the business sectors. The degree of hazard attempted in the exchanges
is the fundamental distinction among investment and speculation. The essential distinction among
investing and speculating is the measure of hazard attempted. High-hazard theory is normally
similar to betting, though lower-hazard contributing utilizes a premise of essentials and in-depth
examination.
 Investment
Investing can be applied in various structures i.e. through financial, time, or energy-based
strategies. In the monetary sense of the term, investing refers to the purchasing and selling of
securities like stocks, bonds, exchange traded assets (ETFs), shared assets, and an assortment
of other monetary items.
 Speculating
Speculating is the demonstration of placing cash into monetary undertakings with a high
likelihood of disappointment. Speculating looks for unusually significant yields from
wagers that can go either way. While speculating is compared to betting, it isn't actually
something similar, as theorists attempt to settle on an informed choice on the course of their
exchanges. Nonetheless, the innate speculative danger implied in the exchange will in
general be altogether better than expected.
Key Distinctions among
Investing and Speculating
INVESTMENT
● The fundamental distinction among
investment and speculation is the
measure of hazard implied.
● Investors or financial backers attempt
to produce a good profit from their
capital by taking on a normal or sub
optimal measure of hazard.
SPECULATING
● Speculators or financial brokers try to
make unusually significant yields from
wagers that can go one way or another.
● Speculators or financial brokers
frequently use fates, alternatives, and
short selling exchanging techniques
 Conclusion
Investigation and examination is a vital piece of the investment procedure. It includes assessing
various resources, areas, and examples or patterns that happen on the lookout. Financial backers
can utilize apparatuses like essential or specialized investigation to pick their venture systems or
plan their portfolios.
Speculation has its defeats. When there are inflated
assumptions for development or value activity for a
specific resource class or area, qualities will rise. At
the point when this occurs, exchanging volume
increases, in the end prompting an air pocket.
Microeconomics
Concepts
1. Price is decided by Supply & Demand

FACTORS
Interest rates

Market price Corporate Results

≠
Intrinsic Value Politics

Exchange rates

Emotions & Expectations

………and so on
2. The Law of Diminishing Returns

“Special Situations”
Emotions in Investing
What Impressed us the most?

From our point of view the hazard factor daunting the financial brokers and
backers in investment as well as speculation interests me a lot, the way there
emotions ,mindset ,behavior and beliefs changes with the change in the
market is very intriguing . Undoubtedly, a lot of effort to examine the
hazards and make the right move is required.
Our Thoughts about Chapter 1

Really good foundation builder for Intelligent Investing-

extreme beginners like ourselves
1. Minimize the chances of
Defensive Investor
suffering irreversible losses

Hybrid 2. Maximize the chance of

Investor
achieving sustainable wins
Enterprising Investor 3. Overcome self-defeating modes
of thought