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Just like to share my own definition of traders and investors that I thought about recently...
First let's start with Ben Graham's definition of investors and speculators.
Graham first stated that an investment operation is one which, upon thorough analysis, promises safety of principal and an adequate return and operations not meeting these requirements are speculative.
So an investor focuses on analysis to look for capital safety and adequate return. This is usually interpreted as fundamental analysis of the company, its business model, its competitive advantage, margins, sales growth and of course, the financials: cash on hand, debt, bankruptcy risk, capex needs etc.
Anything less of such analysis means speculation. A speculator is simply one that doesn't do that kind of rigorous analysis.
Simple right? Read more...