Bruce Greenwald: Value Investing Vs. Value Speculation

It is difficult to distinguish between investment and speculation accurately, and many investments fall into the grey area between to two investment style buckets.

Q1 hedge fund letters, conference, scoops etc, Also read Lear Capital: Financial Products You Should Avoid?

According to Investopedia, the main difference between speculating and investing is the amount of risk undertaken in the trade. Precisely, "high-risk trades that are almost akin to gambling fall under the umbrella of speculation, whereas lower-risk investments based on fundamentals and analysis fall into the category of investing."

But this isn't a one size fits all approach. Indeed, the Investopedia definition immediately throws up another question, how do you define risk?

If you’re looking for value stocks, and...