Kapil Lehar

Investor vs Speculator

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Parameter Investor Speculator
Investment Thesis Investment based on durable competitive moats Investment based on disruptive and cool industries.
Time Horizon Long term(>5years) Short term (single/few days)
Risk Undertaken Reasonable risk High Risk
Return Expectations Expects consistent return over time Expects abnormal returns in short time
Mentality Sticks to fundamental analysis for the long term. Jumping the bandwagon from one stock to another
Risk Capacity Risk averse Readily takes more risks
Decision Based on careful considerations and fundamental analysis of the company and looking into margin of safety, future prospects, dividends etc. Based on intuition, rumors and charts, hopes, market psychology, opinions, etc.
Source of investment Own money invested Usually borrowed money in the form of leverage from brokers
Attitude Sees stock as ownership in the company Sees stock as a tradeable paper.
Type of persons Cautious and Conservative Aggressive
Analysis Type Fundamental Analysis based on experience and past performance of company Technical Analysis based on gut feeling
Valuation Approach Based on absolute values and margin of safety Based on relative valuation
Moto Cash is King Winner takes it all

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