It is common for the media to refer to all market participants as “investors” (e.g., “this morning investors reacted poorly to the economic news release, knocking 2% off market values”). As Graham noted, and as we at Brandes have observed for 50 years, many market participants are not investors. They are “speculators.” In our view, a key phrase in Graham’s definition is “upon thorough analysis,” a pre-requisite for being able to determine the value of an investment. And while we’re on the topic of market coverage, we also note the frequent media fault of using “market value” when they mean “market price.” We believe that it is speculators who commonly mistake price for value. Intelligent investors know the difference! 

      

Source: The Intelligent Investor: A Book of Practical Counsel—Revised Edition, Benjamin Graham. Updated with New Commentary by Jason Zweig (HarperCollins, 1973, 2003)