Mr WaveTheory

Chinese Tech Stock Weekly Update

The difference between speculators and investors is this: speculators care about returns that can generate 5-10x their money, investors care about preserving their capital. Venture capitalists are speculators, because they bet on ideas that have a 1 in 10 chance of succeeding. Speculation makes sense when the odds are good. Mutual fund managers want to make 5% with 80% certainty - and even at that, alot of them fail. I wrote about how to invest in China stocks and the difference between speculating in small China companies and investing in large ones. I will dive into speculation today.

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