While extreme speculation should be avoided, some degree of speculative risk-taking is necessary for economic progress and innovation.

“If the economy was full of investors who were totally riskaverse, then it would be difficult for society to progress and to build out new ways of doing things. But I think that speculation is something that lies a bit on a spectrum.”

Speculation involves attempting to forecast market psychology and average opinion rather than focusing on the intrinsic value of an asset.

“If I may be allowed to appropriate the term speculation for the activity of forecasting the psychology of markets and the term enterprise for the activity of forecasting the perspective yield of assets over their entire life, it is by no means always the case that speculation predominates over enter”