(12-26-2017 09:15 AM)VA49er Wrote:  

(12-25-2017 01:08 PM)Owl 69/70/75 Wrote:  The stock market is speculation, not investment. Investment means building factories and production facilities and funding startups. People speculate in the stock market—or invest overseas—when the ROI on domestic investment is too low.

IMO, long term the stock market is investment, short term it is speculation. If one is in short term might as well go to Vegas instead.

If I put money into Apple or Microsoft when they were just starting up, that is investment. If I buy their shares in an IPO, that is investment. The money goes from me to Apple or Microsoft. If I buy shares in either on the market today, the money goes to some other speculator, and when I sell I get money from some other speculator.

I define it as investment when the money goes to the entity itself, and speculation when the money goes to some other speculator.

If I buy a race horse, that's investment. If I bet on the Kentucky Derby, that's speculation.