Good investors differentiate between “speculation” and “investment”, and avoid…
Good investors differentiate between “speculation” and “investment”, and avoid the former (although not altogether) and put emphasis on the latter. Buying a stock as a tip from a well-meaning friend (or for any other unfounded reason) is not very different from gambling, and has a 50-50 chance of success. Although it can be fun & exciting when done within limits, speculation never forms the core investment strategy of a good investor – in other words, it never takes the place of solid research and rational judgment.
— from The Mind in the Cockpit