"An investment operation is one which, upon thorough analysis promisises safety of principal and an adequate return. Operations not meeting these requirements are speculative" - Graham
Note that investing according to Graham consists of three things
1. You must thoroughly analyze the soundness of the business
2. You must be able to protect yourself against serious losses and
3. You must at least aim for an "adequate" return.
A speculator on the other hand buys a stock because he thinks someone else will buy it at a higher price. An investor guages an investment based on the standard of its value and a speculator based on the price.
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