An investment pays you. A speculation needs someone else to pay you.

So for example, if I pay $695 for a share of Google, as would seem to be the going price this morning, then in order to receive a return I need someone to buy it from me a a higher price. This person would be the GF, or “Greater Fool”. Buyers at these prices are relying on a supply of GFs. Moi, I’m not so sure.

Right now, it seems to me that investments are good. So I buy Treasuries, U.S. and Canadian. They pay me, twice a year. I don’t have to hope for anything, it is what it is with a high degree of certainty.

However, a bet that there is only a limited supply of GFs seems to me to be worthwhile. That, of course, is a speculation.