Investing is about minimizing the odds of suffering irreversible losses and maximizing the chances of achieving sustainable gains. Successful investing doesn't require extraordinary intelligence, unique business insights, or insider information. Instead, it requires a sound intellectual framework for decision-making and the emotional discipline to prevent this framework from being eroded by emotions. The focus is not on the technique of analyzing securities, but rather on investment principles and investors' attitudes and psychology, as the investor's chief problem, and even their worst enemy, is likely to be themselves. Intelligent investing is about managing risk, controlling fear and resisting the temptation of speculation. The urge to speculate is a part of human nature. However speculating should not be mistaken for investing.

Investing and speculating are two distinct activities. Investing involves a thorough analysis of a company's value and future prospects, while speculation is like gambling, based on market trends and rumors. The intelligent investor focuses on the former, aiming for steady long-term returns rather than quick profits.

It's important to understand the difference between these two approaches and to be clear about which one you're using when you engage with the financial markets. If you choose to speculate, do so with your eyes open, knowing that you will probably lose money in the end. Be sure to limit the amount at risk and to separate it completely from your investment program. Remember, investing is not about rushing in and beating the market, but about achieving good long-term returns while managing risk.