Jason Zweig

speculating when you think you are investing; (2) speculating seriously instead of as a pastime, when you lack proper knowledge and skill for it; and (3) risking more money in speculation than you can afford to lose.

can be a lot of fun while you are ahead of the game.

aside a portion—

the smaller the better—of your capital in a separate fund for this purpose.

Never add more money to this account just because

high-grade bonds and leading common stocks;

his simplest choice would be to maintain a 50–50 proportion between the two,

reduce his common-stock component to 25%

Investment versus Speculation

component should carry a fair degree of protection against a loss of purchasing power caused by large-scale inflation

What Has Happened Since 1964