I realise this article is not entirely related to Talent Acquisition but I thought it would be of interest to Talent professionals out there who might be keen to dip their toes into the world of investment in 2018, or seasoned investors who are looking for some extra tips, or Talent start-ups who are looking to attract investors. Either way, I’m sure we can all learn something from what I’m about to share. So, here we go.
Our family has a long and sometimes chequered history of investing. My grandfather Joe was a cavalier investor and he lost most of the family wealth in the Wall Street crash of 1929. My father Tibor, because of that experience, was much more cautious and he had a conservative portfolio of shares based on newspaper research and advice from a trusted share broker. As for me, I’d like to think that I’m somewhere in between.
Tibor started teaching me about investing when I was 18. His goal was to impart me a life skill and teach me about prudent risk and reward. Every Sunday night, we would pour over the investments and trade section in the newspapers and I quickly became conversant with the share market. I started a small portfolio of my own in my early 20s, which now has significantly grown.
My strategies have changed over time and I now invest based on pre-defined guidelines and, predominantly, for growth. When I follow these guidelines over a medium term, say 12-24 months, I tend to accumulate wealth at a greater rate than the average market growth.
Outlined below are my guidelines. I offer these as a guide and strongly recommend that you develop your own guidelines that work for you based on your desired level of risk, your own interests, knowledge and most importantly, where you are comfortable. If a potential investment outcome will worry you or make you lose sleep, then it is not a strategy that you should undertake.
Here are my eight investment guidelines:
The above points are mostly applicable to publically listed companies. I have been asked many times for my strategy for investing in startups. My response is quite easy and they must answer yes to the following questions:
As for my “no-fly zones”, they include:
Dr Simon Moss who is a lecturer in Applied Psychology and Neuro Psychology has a theory that decisions based on research and analytics have better outcomes on average than decisions based on intuition or gut instinct. I totally agree with this line of thought and while I listen to my intuition I back it up with some research to get repeatable optimal investment outcomes.
My biggest mistakes usually come from listening to and following other people’s advice rather than doing my own research and following my own guidelines. Most of the time the person offering advice invariably cares more their objectives rather than considering your needs.
Whilst some of the guidelines and advice I have shared may seem ordinary and obvious (I apologise for those who are looking for something extraordinary), I am reminded by the old saying by Edward E Munro – “The obscure we see eventually. The completely obvious, it seems, takes longer.”
I hope that I’ve added some value to your investment strategy. All the best!
Image: Shutterstock
Speaking about investments, how about investing in your personal development at the upcoming Australasian Talent Conference 2018 to learn more about how can you thrive in a post-A.I. recruitment world? Find out more here.