𝗧𝗲𝗰𝗵𝗻𝗼𝗹𝗼𝗴𝘆 𝘀𝘁𝗼𝗰𝗸𝘀 𝗿𝗲𝗺𝗮𝗶𝗻 𝘁𝗵𝗲 𝗳𝗮𝘃𝗼𝘂𝗿𝗶𝘁𝗲𝘀 𝗼𝗻 𝗪𝗮𝗹𝗹 𝗦𝘁𝗿𝗲𝗲𝘁 𝘁𝗵𝗶𝘀 𝗮𝗳𝘁𝗲𝗿𝗻𝗼𝗼𝗻. 𝗧𝗵𝗶𝘀 𝗰𝗼𝗻𝘁𝗶𝗻𝘂𝗲𝘀 𝘁𝗵𝗲 𝗳𝗿𝗶𝗲𝗻𝗱𝗹𝘆 𝘁𝗿𝗲𝗻𝗱 𝗳𝗿𝗼𝗺 𝗙𝗿𝗶𝗱𝗮𝘆. 𝗧𝗵𝗲 $NSDQ100 𝗲𝘅𝘁𝗲𝗻𝗱𝗲𝗱 𝗶𝘁𝘀 𝗴𝗮𝗶𝗻𝘀, 𝘄𝗶𝘁𝗵 𝘁𝗵𝗲 𝗡𝗮𝘀𝗱𝗮𝗾 𝟭𝟬𝟬 𝘀𝗲𝗹𝗲𝗰𝘁𝗶𝗼𝗻 𝗶𝗻𝗱𝗲𝘅 𝗲𝘃𝗲𝗻 𝗿𝗶𝘀𝗶𝗻𝗴 𝘀𝗶𝗴𝗻𝗶𝗳𝗶𝗰𝗮𝗻𝘁𝗹𝘆 𝗯𝘆 𝟮.𝟮 𝗽𝗲𝗿 𝗰𝗲𝗻𝘁. 𝗧𝗵𝗲 $DJ30, 𝗼𝗻 𝘁𝗵𝗲 𝗼𝘁𝗵𝗲𝗿 𝗵𝗮𝗻𝗱, 𝗿𝗼𝘀𝗲 𝗼𝗻𝗹𝘆 𝘀𝗹𝗶𝗴𝗵𝘁𝗹𝘆 𝗯𝘆 𝟬.𝟮 𝗽𝗲𝗿 𝗰𝗲𝗻𝘁, 𝘄𝗵𝗶𝗹𝗲 𝘁𝗵𝗲 𝗯𝗿𝗼𝗮𝗱𝗲𝗿 $SPY, 𝘄𝗵𝗶𝗰𝗵 𝗶𝗻𝗰𝗹𝘂𝗱𝗲𝘀 𝗯𝗼𝘁𝗵 𝘁𝗲𝗰𝗵𝗻𝗼𝗹𝗼𝗴𝘆 𝘀𝘁𝗼𝗰𝗸𝘀 𝗮𝗻𝗱 𝗯𝗹𝘂𝗲 𝗰𝗵𝗶𝗽𝘀, 𝗴𝗮𝗶𝗻𝗲𝗱 𝟬.𝟴 𝗽𝗲𝗿 𝗰𝗲𝗻𝘁. 𝗧𝗵𝗲𝗿𝗲 𝘄𝗮𝘀 𝗻𝗼 𝘀𝗶𝗴𝗻𝗶𝗳𝗶𝗰𝗮𝗻𝘁 𝗲𝗰𝗼𝗻𝗼𝗺𝗶𝗰 𝗱𝗮𝘁𝗮 𝗼𝗻 𝘁𝗵𝗲 𝗮𝗴𝗲𝗻𝗱𝗮 𝘁𝗼𝗱𝗮𝘆.
𝗕𝘂𝘁 𝗱𝐨𝐞𝐬 𝐭𝐡𝐢𝐬 𝐫𝐚𝐢𝐬𝐞 𝐚𝐧𝐲 𝐢𝐧𝐭𝐞𝐫𝐞𝐬𝐭 𝐢𝐧 𝐲𝐨𝐮? 𝐍𝐨? 𝐓𝐡𝐚𝐭’𝐬 𝐰𝐡𝐲 𝐚 𝐪𝐮𝐞𝐬𝐭𝐢𝐨𝐧 𝐈 𝐨𝐟𝐭𝐞𝐧 𝐠𝐞𝐭, 𝐢𝐬: 𝐖𝐡𝐚𝐭 𝐬𝐡𝐨𝐮𝐥𝐝 𝐈𝐧𝐯𝐞𝐬𝐭𝐨𝐫𝐬 𝐥𝐨𝐨𝐤 𝐟𝐨𝐫 𝐰𝐡𝐞𝐧 𝐜𝐨𝐩𝐲𝐢𝐧𝐠 𝐚 𝐏𝐨𝐩𝐮𝐥𝐚𝐫 𝐈𝐧𝐯𝐞𝐬𝐭𝐨𝐫 (𝐏𝐈)? 𝐎𝐫 𝐭𝐨 𝐛𝐞 𝐦𝐨𝐫𝐞 𝐞𝐱𝐚𝐜𝐭: 𝐇𝐨𝐰 𝐝𝐨 𝐲𝐨𝐮 𝐫𝐞𝐚𝐥𝐥𝐲 𝐬𝐞𝐩𝐚𝐫𝐚𝐭𝐞 𝐭𝐡𝐞 𝐰𝐡𝐞𝐚𝐭 𝐟𝐫𝐨𝐦 𝐢𝐭𝐬 𝐜𝐡𝐚𝐟𝐟?
I get it. It can be a bit much. There are lots of PIs. Everyone on this platform has undergone different training and credentials. And believe me when I say: some had no training at all. Others have had a lot of training and in the current market conditions are easily outperformed by the newcomers. As to PIs, some have more contact with their copiers, some have less. Some explain their strategy, others let (or try to let) it speak for itself.
Most people spend more time researching a car for $50,000 than they do when handing over their life savings, a study with the big wealth management offices showed. It doesn’t have to be that extreme. However, your financial future matters. A reason people are behaving like that is that people build an avoidance strategy around their financial future. It is making them uncomfortable planning too far into the future. On the other hand most people like the direct reward of consumption by researching and buying the next car, bike or surfboard. Don’t get me wrong - I'm not against consumption - our whole economy is designed for it and I don't live frugally. But between today's dominant consumerist and the frugalist, there is a huge spectrum that is healthy AND sustainable for the world we live in, for the environment and ones financial future.
𝐀𝐥𝐫𝐢𝐠𝐡𝐭, 𝐚𝐥𝐫𝐢𝐠𝐡𝐭. 𝐄𝐧𝐨𝐮𝐠𝐡 𝐟𝐨𝐫𝐞𝐩𝐥𝐚𝐲. 𝐁𝐞 𝐬𝐩𝐞𝐜𝐢𝐟𝐢𝐜!
Investors should interview investment professionals just as they would a job candidate. After all, it is a job (in my opinion the best one in the world), that you give someone! Look up their credentials and their experience in the job, so you are entrusting your money with someone who can meet your needs. Check their backgrounds, aims and past performance as well as their strategy, to get an idea on how the portfolio is managed.
So which PI is right for you? First, figure out what YOU want from YOUR investment. Only then, look for a PI who can support that. Do you want the allrounder, who has the bigger picture of the whole portfolio in mind, keeping risk, volatility and fees in check, or do you want the thrill of risky investments? Keep in mind, that also these categories only display extremes. There are allrounders with more and with less volatility. Then there is the pure technical analyst or the fundamental dividend or equity investor. When you found your PI, try to stick to the plan. Give it time, to really pay off.
𝐄𝐯𝐞𝐫𝐲 𝐬𝐢𝐧𝐠𝐥𝐞 𝐢𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 𝐚𝐩𝐩𝐫𝐨𝐚𝐜𝐡 𝐡𝐚𝐬 𝐚 𝐫𝐚𝐢𝐬𝐨𝐧 𝐝'𝐞̂𝐭𝐫𝐞. 𝐀𝐬 𝐭𝐡𝐞𝐲 𝐥𝐢𝐤𝐞 𝐭𝐨 𝐬𝐚𝐲 𝐢𝐧 𝐥𝐚𝐰: 𝐲𝐨𝐮 𝐜𝐚𝐧 𝐚𝐫𝐠𝐮𝐞 𝐰𝐡𝐚𝐭 𝐢𝐬 𝐚𝐫𝐠𝐮𝐞𝐝. 𝐓𝐡𝐞𝐫𝐞 𝐢𝐬 𝐧𝐨 𝐰𝐫𝐨𝐧𝐠 𝐨𝐫 𝐫𝐢𝐠𝐡𝐭 𝐚𝐩𝐩𝐫𝐨𝐚𝐜𝐡, 𝐜𝐨𝐧𝐭𝐫𝐚𝐫𝐲 𝐭𝐨 𝐰𝐡𝐚𝐭 𝐭𝐡𝐞 𝐯𝐚𝐫𝐢𝐨𝐮𝐬 𝐢𝐧𝐯𝐞𝐬𝐭𝐨𝐫 𝐜𝐚𝐦𝐩𝐬 𝐰𝐨𝐮𝐥𝐝 𝐡𝐚𝐯𝐞 𝐲𝐨𝐮 𝐛𝐞𝐥𝐢𝐞𝐯𝐞. 𝐀𝐧𝐝 𝐚𝐛𝐨𝐯𝐞 𝐚𝐥𝐥: 𝐢𝐭 𝐢𝐬 𝐎𝐍𝐋𝐘 𝐭𝐡𝐞 𝐫𝐞𝐬𝐮𝐥𝐭 𝐭𝐡𝐚𝐭 𝐜𝐨𝐮𝐧𝐭𝐬.