A reasonable definition of 'investment' involves the allocation of capital for the purpose of long-term creation of wealth in the instrument being invested in.

A reasonable definition of 'investment' involves the allocation of capital for the purpose of long-term creation of wealth in the instrument being invested in. This should be contrasted with 'speculation', which best applies to short-term strategy that merely seeks to skim alpha off the top of fluctuations in value, without regard to long-term health of the instrument.