It is not just about the potential upside, it is also about the likelihood of that upside being seen. And also what is the potential downside of a non earner, that is burning cash, versus a company that is extremely profitable.
The upside may be the same or even more on the speculative stock in the long run, but that doesn't make it a better investment if the upside is less likly to happen, and the downside is far greater in my opinion, both of which are characteristics of speculative investments. Now I get all investments are speculative to a degree and TPNL a stock I own a miniscule position in I see as very speculative, it has home run potential, but it could also very well be a strikeout. But if TPNL doesn't work out and goes to $0 it is a rounding error on my portfolio. So it is important to recognize it is fine to play speculative stock, I think my last post maybe would say otherwise, but it is important to realize and investment is speculative and right size the position so if it doesn't work out, it is not the end of the world in my opinion.
