Investorial

I am a regular reader of Blog Maverick, better known as the self-made billionaire Mark Cuban. In his latest post, Mark poses the question of what defines someone to be an investor and answers himself to generate discussion among his readers.

Mark regularly writes blogs about investing. I find him both knowledgable and insightful. But more importantly, I feel he keeps an open mind and really knows what blog writing is really all about.

The post is a good primer for beginner readers to be exposed to the traditional definitions and processes of an investor. Mark uses the word speculator as a contrast/foil to an investor. I use the word trader to describe basically what is a speculator. Tometo, Tomato.

The criteria I use to separate the two types are intent. Both trader and investor and making an investment for rewards by assuming risk. However, an investor may not necessary have an exit strategy in mind; looking for the long term. Traders on the other hand, are more short term oriented, and most will have an exit strategy and parameters outlined.

I consider myself an investor because issues like shareholder rights, long term performance are more important to me. It’s important to understand what type of an investor you are? What are you? Investor or Speculator/Trader?

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