Arrange View Share Window Helo Speculated and mestment 1254 Zom Tot Speculative drive and investment Legendary investor Benjamin Graham (Warren Buffett's mentor) drew a distinction between invest ing and speculating: "The speculator's primary Interest lies in anticipating and profiting from market fuc- tuations. The investor's primary interest lies in acquiring and holding suitable securities at suitable prices. The British economist John Maynard Keynes drew a similar distinction between investment - Yorecasting the prospective yield of an asset over its whole life," and speculation - "forecasting the psychology of the markets." In essence, speculation is buying an asset in order to sell at higher price, in contrast to creating a marketable good for profit. John C. "Jack" Bogle, the founder of Vanguard Group, the low cost index fund seld: "The stock market is a Glant distraction from the business of investing." In his 60-year career, he has witnessed o shift from a world where long term investing was the niantra to one in which short-term speculation is running rampant. The numbers explain what he means: annual turnover of U.S. stocles climbed from about 15% in 1951, to 100% in the 1990s to 280% in 2008 before dipping slightly to 250% in 2011 In his latest book, "The Clash of the Cultures: Investment vs Speculation, Bog'e explains why speculation has eclipsed investing by painting to a broader change in the national culture: We Amer can like to buy things-in abundance-before we have the cash to pay for them. We focus on today wants rather than tomorrow's needs. Even our wealthiest citizens never seem to have enough. We com pare ourselves with our neighbors and since the realities of life can be so hard to overcome we look to speculation-event at long odds to lift us out of the everydayness of our lives Me Bogle has explored the theme of unsatiable acquisitiveness, in a book called Enougnober with a story about the novelist Joseph Heller who, at lavish party in a billionaire's house was ribbed by another guest, author Kurt Vonnegut, that their host had probably made more money in a day than money Mr Heller had come from his bestseller Catch-22. Me Heller's retortivet om ho can never have I know that I have enough For the mass of population, trading bike casino gamtilingin ultimatelare La couts, advisory tres sales and administrative factured in com Why to invest for the long out and constant of the red which con buying and holding-Index funds as the core of a relia htwith highly trad volumen M. Dogande 12 MacBook Air ? This document has missing forts. Template for Analyzing the Logic of an Article 1. State the author's purpose for writing the article. (Eg. to analyze, to Inform, to appeal, to de-bunk, etc. an issue.] 2. Figure out the key question in which the author attempts to interest the readers. 3. Identify the most important (not alll) information in this article - the facts experiences, data-the author is using to support their conclusions. 4. What is the main inference and conclusion in this article ... [Consider that there may be more than one! Or that the author may want to leave the issue open.i.e. without a conclusion] 5. Select the key concept(s) in the article and elucidate their meaning 6. What the author is taking for granted (that might possibly be questioned] 7. What are the implications if people take the author line of reasoning seriously 8. What consequences are likely to follow if people ignore the author's reasoning 9. What is (are) the main point(s) of view presented in this articles MacBook Air
