First chapter : Investors versus speculators

I finished reading the first chapter and I have documented below my interpretations of the first chapter.

By definition, an investor is someone who conducts a thorough analysis so that he would keep his principal safe and expect to have an adequate return. A speculator, on the other hand, doesn't follow this criteria.
To give the reader an illustration, if I have $1000 to invest, I would first make sure that there is almost no possibility of losing my $1000 in the first place. I have put an emphasis on the word "almost" because there will always be some probability of losing the principal, albeit very low. Then I would need to invest in a good business that would give me a nice return over time.
The question a reader may ask is, how will I know that my principal is safe? The only way to find out is to compare the price of a stock with the value of the underlying business. Ben Graham calls this "margin of safety". There are more details on margin of safety in subsequent chapters.

Speculation shouldn't be looked down upon. Indeed, speculation can be lucrative and some speculation can't be avoided. Problems occur when people imagine they are investors when they are, in reality, speculators. If you know what your boundaries are and you recognize you are a speculator, you can use intelligent speculation to make serious money. You may also switch between the roles of an investor and a speculator.