Investing vs. Speculating

After a short intermezzo into the world of politics, back to economics and investing.

So, how could one define and contrast "investor" vs. "speculator"? This is also the main focus of the first chapter from Benjamin Graham's "Intelligent investor" - "An investment operation is one which, upon thorough analysis promises safety of principal and an adequate return. Operations not meeting these requirements are speculative."

Note that investing, according to Graham, consists equally of three elements:
- you must thoroughly analyze a company, and the soundness of its underlying businesses, before you buy its stock;
- you must deliberately protect yourself against serious losses;
- you must aspire to "adequate", not extraordinary, performance.