Money and Finance
From Brandes on Value:
Related previous posts:
Graham and Dodd on the ‘Relation of the Future to Investment and Speculation’
Warren Buffett on investment, speculation, and gambling
James Grant quote
- Earnings And Revenues...
From Capital Account, and written in November 1999. I think it is also a lesson that repeats itself over time, and it reminded me of Graham and Dodd on the ‘Relation of the Future to Investment and Speculation’:Coincident with the migration toward...
- Hussman Weekly Market Comment: A Warning From Graham And Dodd
Link to: A Warning from Graham and Dodd “During the latter stage of the bull market culminating in 1929, the public acquired a completely different attitude towards the investment merits of common stocks… Why did the investing public turn...
- Warren Buffett On Investment, Speculation, And Gambling
From Warren Buffett’s 2010 FCIC testimony (the audio is available HERE):Interviewer:I’d be interested in, you know, what you think speculation is as opposed to investing which you’ve written about and also what you think excess speculation...
- Graham And Dodd On The ‘relation Of The Future To Investment And Speculation’
“It may be said, with some approximation to the truth, that investment is grounded on the past whereas speculation looks primarily to the future. But this statement is far from complete. Both investment and speculation must meet the test of the future;...
- James Montier: Bond Bubble - A Sterile Debate On Semantics
Much ink has been spilt over the question of whether government bonds are in a bubble or not. The bond bubble believers love to cite stats along the lines that bonds are witnessing inflows at the same pace as equity funds did during the TMT bubble.The...
Money and Finance
Investing and speculation...
From Brandes on Value:
Benjamin Graham addressed the differences between investing and speculation on the very first page of his book The Intelligent Investor: “An investment operation is one which, upon thorough analysis, promises safety of principal and an adequate return. Operations not meeting these requirements are speculative.”
This still rings true today. Yet, with my contemporary perspective, I add two more criteria that define speculation:
- Any contemplated holding period shorter than a normal business cycle (typically three to five years)
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- Any purchase based solely on anticipated market movements
Related previous posts:
Graham and Dodd on the ‘Relation of the Future to Investment and Speculation’
Warren Buffett on investment, speculation, and gambling
James Grant quote
- Earnings And Revenues...
From Capital Account, and written in November 1999. I think it is also a lesson that repeats itself over time, and it reminded me of Graham and Dodd on the ‘Relation of the Future to Investment and Speculation’:Coincident with the migration toward...
- Hussman Weekly Market Comment: A Warning From Graham And Dodd
Link to: A Warning from Graham and Dodd “During the latter stage of the bull market culminating in 1929, the public acquired a completely different attitude towards the investment merits of common stocks… Why did the investing public turn...
- Warren Buffett On Investment, Speculation, And Gambling
From Warren Buffett’s 2010 FCIC testimony (the audio is available HERE):Interviewer:I’d be interested in, you know, what you think speculation is as opposed to investing which you’ve written about and also what you think excess speculation...
- Graham And Dodd On The ‘relation Of The Future To Investment And Speculation’
“It may be said, with some approximation to the truth, that investment is grounded on the past whereas speculation looks primarily to the future. But this statement is far from complete. Both investment and speculation must meet the test of the future;...
- James Montier: Bond Bubble - A Sterile Debate On Semantics
Much ink has been spilt over the question of whether government bonds are in a bubble or not. The bond bubble believers love to cite stats along the lines that bonds are witnessing inflows at the same pace as equity funds did during the TMT bubble.The...