Investor self profile (Revised)

I’ve gotten some feedback on the investor self profile I posted yesterday, and here is an updated version.  To save me from having to repeat myself, please read yesterday’s post now, if you have not already.

Investor Self-Profile

1 point 2 points 4 points Why

1. When making an important decision I first…

Consult with friends and family.

Do what feels right.

Research the subject.

Independent decision making.

2. I have too much to do…

All the time.


Hardly ever.

Research can’t be rushed.

3. My past mistakes…

I don’t make mistakes.

Keep me awake at night.

Have been learning experiences.


You need to be able to recognize your mistakes, and get out before it’s too late.

4. Money…

Will solve my problems.

Lets me buy things I want.


Is a means to an end.

Needing the money badly makes it hard to be objective.

5. I live for…

Meaningful relationships.




See my contrarian blog entry.

6. I can invest this much and not spend it for 10 years.

Less than $50,000.00

$50,000 to $200,000

Over $200,000

Commissions can eat a small account alive.

7. I want to make money in the market…

So I can quit my job/ because I lost my job.

To achieve future financial goals.

Because the market is fascinating.


This is about being objective about the results.

8. I buy things…

To make myself feel good.

Only when I need them.

Only when they’re on super-clearance.


Stock picking is all about bargain hunting.

9. When I have free time I…

Relax or have some fun.

Catch up on projects around the house.

Try to learn something.

Being compulsive pays.

10. My answers to this profile

Were fudged a little.

Were honest, but not deeply considered.

Were the result of deep introspection.

You have to be honest with yourself and your money.



Investing strategy

 Work hard, save as much as you can, and let an adviser you trust manage it.


 Set up an account at a low cost mutual fund family.  Choose an asset allocation based on your risk tolerance (most mutual fund families and discount brokers have quick online questionnaires to help you with this), save as much money as you can every month, and throw away the monthly statements except when you rebalance the portfolio every 1-2 years.


 As for 17-23 points, but you probably won’t get into too much trouble looking at the monthly statements.


You might be ready to invest your own money.  Try not to lose too much (you will lose some… taking intelligent risks is what it’s all about.)  Don’t let early success go to your head.  Overconfidence is the most dangerous emotion for an investor.

1 Comment

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