INVESTOR AND SPECULATOR

If you are an investor , you are looking on what the asset is going to do , if you are an speculator ; you are commonly focusing on what the price of the object is going to do , and that is not our game - WARREN BUFFET

To understand the meaning of investor and speculator we take the e.g. of STOCK MARKET .

In the stock market every people believe that they are investor but they are not . Very few people are investor in the stock market . Investor analyze a company , and the soundness of its underlying businesses , before they buy its stock . They must deliberately protect themselves against serious losses . They must aspire to adequate , not extraordinary performance . They calculates what a stock is worth , based on the value of its businesses .

While speculator gambles that a stock will go up in price because somebody else will pay even more for it . For a speculator , the incessant stream of stock quotes is like oxygen ; cut it off and they dies . In the end most of the time speculator have nothing in hand and in investment they have a good result in the end . 

BE A INVESTOR AND NOT A SPECULATOR .