We all think we know what "investing" means. Merriam-Webster defines it as “to commit money in order to earn a financial return.”
On the other hand, "speculating" is: “to form a theory or conjecture about a subject without firm evidence.” But if the difference is so clear, why do so many people go so far astray — thinking they’re investing when what they’re really doing is speculating?
The best investments are transparent, reasonably liquid (they can be easily bought and sold because there is a ready market for them), have some intrinsic value, and a track record.
The thing is, the gray area can be wide. Some “hot” investments are really just gambles in disguise. Then there’s the fact that when not done thoughtfully, some things that look like investments can turn out to be, with hindsight, bets.
With that in mind, here’s a list of nine terrible investment ideas.