Investing vs. Speculating: A No-Nonsense Guide for NHS Professionals from a Kaynesian Perspective
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This blog will enlighten your external view of the stock market. Even better if you are a stock market novice/amateur. The Keynesian view of the stock market was first introduced to me 15 years ago and to this day, some of his ideas still form the fundamentals of my basic investing and asset allocation strategy.
Alright, fellow NHS heroes—let’s talk about money. I know, I know… between 12-hour shifts, endless paperwork, and the occasional “Code Brown” situation, who’s got time to think about the stock market? But trust me, a little financial know-how now could mean less stress and more freedom down the line (like maybe retiring before your back gives out from all those double shifts).
So, let’s break down a big, fancy concept from economist John Maynard Keynes—but in plain English (with no scary graphs, I promise). Keynes made an important distinction between Investors and Speculators, and understanding the difference can stop you from making expensive mistakes.
As I constantly champion the idea that it is difficult for one to achieve finance independence without investing in value-generating assets, as everyday investors, it is vital for you to understand the difference between investors versus speculators. To invest, time in the market is key, NOT timing the market.
Understanding the difference between the two will allow you to tolerate temporary market fluctuations. You will have better tolerance when the market decides to go into the red for a little while. This allows you to stay in the game without panic selling.
In fact, I have now trained myself so far that I get excited when the market crashes! I can buy in cheap!
Investors: The Patient Tortoises of Finance
You’ve probably heard the phrase "slow and steady wins the race". Well, that’s an investor’s motto. Investors buy things like stocks, index funds, or property with long-term growth in mind. They’re not interested in making a quick buck—they’re building wealth over decades.
How do investors make money?
Owning a piece of a company – When you buy shares, you literally own part of a business. If the business grows, so does your investment.
Dividends – Some companies share their profits with investors. Think of it like getting a little bonus for being patient.
Buying when prices are low – When the market has a wobble (because speculators are panicking—more on them later), investors see discounts instead of disasters.
Example:
Imagine you’re buying a house. An investor would look for a solid home in a good location with potential to increase in value. They wouldn’t buy just because everyone is suddenly hyping up a random street.
Speculators: The "Greater Fool" Game
Now, meet the speculators—also known as the financial adrenaline junkies. Instead of looking at a company’s long-term health, they try to predict short-term price swings.
Speculators think, "If I buy this now, surely someone will pay more for it next week." This is sometimes called "The Greater Fool" theory—the idea that you can always find someone even more optimistic (or reckless) to buy from you at a higher price.
How do speculators make money?
Short-term price changes – Buying low and selling high (or at least, trying to).
Jumping on hype trains – Think Bitcoin booms, meme stocks, or whatever your mate in the break room is raving about.
Ignoring actual business value – Speculators don’t care if the company is making money—they just want to ride the wave.
Example:
Remember Furby's and Beanie Babies? Everyone went wild for them, convinced they’d be worth a fortune one day. Then reality hit, and now they’re stuffed in attics next to old NHS uniforms. That’s speculation in action.
Why Should NHS Professionals Care?
As hardworking healthcare professionals, we don’t have time to stress over every tiny market movement. That’s why investing (not speculating) is the better way to build long-term wealth without turning your finances into a casino.
The Investor’s Advantage
✔ Less stress—no panic-selling when prices drop
✔ Passive growth—your money works while you sleep (or do night shifts)
✔ A realistic path to financial freedom—so you’re not working forever
Final Thoughts: Be an Investor, Not a Gambler
Keynes was right—both investors and speculators exist in the market. But if you want less stress, more security, and a realistic path to financial freedom, investing like a tortoise (not a hare) is the way to go.
So, next time someone says, "This stock is going to the moon!" ask yourself—are you playing a long-term game, or just hoping to find a greater fool to pay more for it?
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