Question

Investments is well ground and carefully planned speculation. Discuss

Answer 1

Investment can be understood as setting aside surplus fund in such a manner that provides return from such surplus. It is commonly referred as allocating funds for a better purpose and in a better return generating resource. However, it is not too far from speculation. Often times investments are compared to speculations to some extent because the returns on investments are merely a result of speculation turning out good or bad. It is to be noted that although investments and speculations do have some similar characteristics, investments are more planned and thoroughly analysed, while speculations are ( as the word suggests) more in the nature of guesses and trials and errors. Therefore it would be right to say that even though fruitful investments are well analysed, they are more like carefully planned speculations, because the future uncertainty cannot be predicted with 100% accuracy.