At first thought the answer looks very simple not until you actually sit down and put pen to paper to answer the question then you realize its not as easy as you may think.
According to the legendary Benjamin Graham, along with David Dodd, attempted a precise definition of investing and speculation in their seminal work Security Analysis (1934). “An investment operation is one which, upon thorough analysis, promises safety of principal and a satisfactory return. Operations not meeting these requirements are speculative.”
There are always two games going on in the market at any time: a game of skill and a game of strategy. Games of skill are speculating; and games of strategy are investing. The best way to understand this is to look at the definitions. Investors, like Warren Buffett, want to find the underlying value of a company. The time horizon is the same time horizon it takes to work out the company’s strategic plan, usually years and decades. The speculator doesn’t care about the underlying value of the company. He cares about the underlying demand of buyers and sellers in the stock. He is looking at the beauty-contest aspect: will people like the stock and bid it up or not.

So, let’s begin. What is the definition of investing? What is the definition of speculation?

They are both one and the same thing, except for semantics sake.

Both of them are aiming at the SAME OBJECTIVE, to make profits.

None of them is 100% sure that the objective will be achieved.

Both of them have put into consideration certain factors before carrying out the transaction.

Despite the factors considered, both of them live on FAITH to get to the objective.

We will make a better world soonest...2015

An investor owns the cow because of the milk and calves to be produced, while a speculator owns the cow because of the beef.

@OP... IN NIGERIA EVERYBODY IS AN INVESTOR WHETHER YOU SPECULATES OR STRATEGIZE...

YOU WILL NOT CHANGE THIS MENTALITY NEITHER WILL I!!!

BUT KNOW YOURSELF AND BE FOCUS, FORGET THE NOISES AROUND AND INVEST WITH PROPER CONVICTION AND NOT FROM INVESTOR ANALYST TIPS...