Investment versus Speculation
The difference between investment and speculation has been discussed in countless ways. My way of interpretation is that the latter is to find a way to increase your assets in a quick way, yet real opportunities are rare. Most of them are traps. Or, there are plenty of opportunities, but it is only a few who can grab that insight or chance.
Investment, to put it in a simpler expression, is to use money (capital) to buy a certain portion of the world. We are part of the world, and buying shares is to share or own a certain part of the world.
The world is ever-changing, rising and down in different sectors, but if you are diversified enough, you eventually will own a portion of the world. That is more important than the mere book value - the behind value is more important - the portion of the world you actually own is not going to fluctuate every day.
So whenever the market falls into chaos, please remember this insight.
More reading
投資與投機
投資與投機的不同，歷代太多人講得太多，我的進路只是幾句，投機是在芸芸眾海中尋找一個令你金錢快速暴增的機會。而真正的機會寥寥可數，大部份都是陷阱。或者，有不少真是機會，但是能夠掌握的人卻很少。
投資，簡單說，就是用金錢（資本）購買你在世界上的某個份額。你是這個世界其中的一份子，而購買股票就是你擁有這個世界的某一份子。
世界固然不斷在變更，不同範疇固然有升跌，不過，如果買得夠分散的話，你始終擁有這個世界的一定份額。那麼你觀看賬面的分別，就不重要了，你在這個世界的份額，後面真正的價值，並不是會出現一天就大起大跌的跡象。
所以面對市況高峰浪急，記住這個特性就可以了。