Are you a speculator or an investor?

There was an article in the Sunday Independent last week asking Where’s the best place to invest a spare €100k. I was surprised the some of the advisors interviewed said to invest in Irish property. Is it really that long ago since we saw property values plummet -60%? Or was this some great advice for long term investing? Or people just hoping on the bandwagon? So, what is speculation and what is investing?


  1. Forecasting – are you trying to predict a future spike in the markets?
  2. Marketing timing matter. It matter when you get in and it matter when you get out.
  3. No diversification – Investing in just one asset class in the hope that it will shoot the lights out.
  4. Short term investment – are you trying to make a quick buck?
  5. Lots of trading…which means increased costs


  1. No forecasting – We don’t know what the future holds so why guess?
  2. Long term investment – Making money in the long term.
  3. Diversification – Not everything will go up and down at the same time. By diversifying, you reduce your risk.
  4. Buy and hold strategy. Get it right at the outset and hold it for a long time. No additional costs.
  5. Market timing isn’t vital.

When it comes to your own money, are you a speculator or an investor?

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