What Xan said.
And for the record, I am not even remotely "offended." I feel strongly about my point but all is well over here, and I think
hope you are fine, too.
Kriegsspiel wrote: ↑
Fri Sep 13, 2019 10:04 am
dualstow wrote: ↑
Fri Sep 13, 2019 6:14 am
Harry, Rule #3 in Fail-Safe
It's weird reading those quotes. Because really, if you're buying shares of companies that you don't even know about, on the hope that they'll be productive over the long run, but you don't know if they're actually shitty companies or profitable... isn't that
the real speculation? Consider the definition of speculative (engaged in, expressing, or based on conjecture rather than knowledge) and conjecture (an opinion or conclusion formed on the basis of incomplete information).
I think of it more as allocating
, like Cullen Roche does, instead of investing.
IE, you're allocating when you designate a certain % of your wealth towards stock ownership, regardless of what those companies are doing or how they're performing at any time. And you're investing/speculating when you investigate and specify where your money is going. Investing/speculating is more of a business activity, and allocating is more of a personal finance/behavioral finance activity.
Not really, kriegs. I mean that's a semantical game that no one can really win, because there's no authority on it.
when you buy stocks for the long term, even if you're buying the broad market.
One could pick apart these words ad absurdam, and then what is the point of having any categories at all?
You could prospect for gold because you heard there might be deposits in the hills and start digging randomly.
A farmer can buy seeds from a reputable source and plant them on the land he knows well.
You can buy a stock for a company you don't really believe in, but you like the way the patterns of activity look.
You can buy the broad market.
You can have a 100% treasury portfolio.
There is a spectrum of risk-taking here, even if we don't want to strictly put each one into investing or speculating. It's very clear. To turn around and say that every choice is based on some kind of analysis, well- is not saying very much of anything.
Caveats about past performance notwithstanding, you can know something about stock market investing, decide if you want to take risk in the market, and *invest* in the broad market. If you say that is the real speculation because you haven't studied the 3,000+ companies, then I don't know what "investing" is. But I would definitely say yours is a false premise.