The core difference between investing and speculation lies in time and intrinsic value.

Speculation is essentially a short-term博弈 🎰, often risking small assets for the chance of large returns. This pattern frequently leads to becoming addicted after a few wins, shifting to betting large amounts for small gains. A single unexpected black swan event can result in Game Over (hedge funds, sports betting, Texas Hold'em, high-frequency quant strategies are essentially all of this type), but the advantage is speed.

The essence of investing lies in identifying long-term growth potential and valuation mispricing. The advantage is objectivity, long-term stability, and dependability, but it requires the ability to accurately judge the true long-term value of an asset. This demands effort, talent, inspiration, and familiarity.

Therefore, although the theory of value investing is widely known, very few people can withstand the test of time and diligently conduct research. This is one of the reasons why speculative and hedge funds are so numerous, while funds focused on long-term value are rare and difficult to sustain.