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