Investing vs Speculation

Presence of intrinsic value ( मूल्यांकन) = Investing
( 🖊️ , 📚 , 🧢 बेचने पर कुछ कीमत मिलती है।)

Absence of Intrinsic Value ( Not product/currency to value) = Speculation

We invest in below assets due to Intrinsic Value ( मूल्यांकन होना)

Stocks ( Industry, Business) =
Earning, Cash flow, Dividend

Bonds = Rate of interest, credit worthiness

Real Estate = Rent, Mortgage

We speculate in below assets which has no intrinsic value (मूल्यांकन)

Crypto currency = No store value, doesn’t produce value, extreme price volatility, not regulated.

Options, Futures and other derivatives = depends on the price performance of underlying assets or securities.
Otherwise no value apart from that.

Planners view –

We humans are originally irrational (love to behave more with heart than mind) and speculation is irrational so from inside we all love that irrational volatility.

But Investing is a serious and boring business and is 100% rational (based on logic and reasons)

Investments done with mind help you to be financially free and live your life meaningfully.

Wishing you all continuous financial success and personal happiness

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