Phil Town

I know I'm going to get my money back at a minimum.

And if things work out, this might be worth a lot down the road.

That's an investment.

Everything else is just absolute speculation.

And that's what most people are doing with their 401ks.

They're speculating.

Yeah, Bill's not much of a speculator.

He's a pretty active manager.

He gets in there and tries to make management work better.

But he doesn't buy things that he thinks he's going to lose money on.

No, people do it all the time, man.

What do you mean nobody would?

No, they buy things all the time where they know they're going to lose some of them.

That's the essence of speculation.

That's what happens when you go play blackjack in Las Vegas.

You hope you win more than you lose.

That's what we call trading.

So when I'm doing options trading, for example, which is fundamental, I think, to good investing these days, particularly this market, I know I'm going to lose some investments.

I just don't know which ones, right?

Some trades I'm going to lose.