A true investor must have control
April 7th, 2007Are you an investor? What make you think you are an investor? You have invest your money in Fixed Depost? You have few bucks in Unit Trust? You have bought some shares recently? You just bought your real estate for your investment?
To me a true investor is the one who have control. Especially on risk management. Then, you have control on the profit making. If you don’t know what you must do, if something go wrong, stock market crash for example, interest rate issue, and you rely on other people to control it for you, I don’t think you’re a true investor.
If someone come to you, and recommend that ABC Fund can give you 10% return annualy but further tell you that past performance doesn’t guarantee future performance, do yo know that you’re not in control?
Or maybe he says that you can only get your capital back + 25% return after certain years, are you really in control of your money?
Or, you’re interested in something that only guaranteed consistent return of 3% every 6 months?
And which is better if you limit your losses based on certain percentage of the capital involve or when fundamental aspect has changed?
Many people claim that they are an investor. But they actually know nothing. They invest because of recommendation, sales pitch, hot tips and rumours in town and lastly they trapped when his investment goes wrong. But a true investor know when to sell before he buys because he controls everything.
April 7th, 2007 at 7:31 pm
I disagree with the argument. Your argument is on “smart” investor not “investor” itself.
It’s just like sales or marketing, people who have no experience are tend to rely on them because they “believe” in their expertise , of course the latter would always disclaim of “guarantee” on anything.
A smart investor is able to see through the gimmicks and of course using sound economics and mathematics to derive some possibly arbitrage or hedge opportunities…
Technically, only suckers will leave everything to a so called “adviser”