Sunday, May 26, 2013

How investments mirror the investor’s personality


Image Source: benzinga.com



Much like how people differ when it comes to facing life, investors also adapt different styles in tackling the volatile world of investments. More often than not, the way by which investors handle their investments is greatly reflective of their actual personalities, as idiosyncrasies might play a large role in influencing investment decisions.

For example, those who are risk-averse usually end up becoming conservative investors. They are the “planners”—careful and meticulous investors who are alright with modest returns as long as the capital remains intact. They’d rather invest in expensive and slow-growing blue chip stocks, so long as they are assured of asset protection and regular dividend payouts.


Image Source: articles.economictimes.indiatimes.com



Meanwhile, there are people with strong personalities who aren’t afraid of the risks and who would rather lose in the act of winning rather than staying in a gray area. Applied in investing, they are known as the “players”—investors who actively play in the markets and invest in securities with the highest growth prospects, notwithstanding the counterpoising risks. They gain big, they lose big—such is the life of the players.

But there also those who are more optimistic than most people and who are willing to learn should they be given the opportunity. In investment speak, these people are “adventurers”—investors who see the markets as an opportunity to improve their present status and will do whatever it takes to learn its labyrinthine secrets toward success.


Image Source: smallbusinessbc.ca


Brown University alumnus Alex von Furstenberg is an investment maven who specializes in opportunistic investing. Learn more about his investing personality by visiting his website.