January 4, 2019

The 5 investor types

1. The Disinterested One

The disinterested investor understands that he must prepare for old age. That's why at some point he will open a Pillar 3a solution. He also has a savings account, but at what bank? And what was the login again?

The disinterested person is not interested in his assets. He makes sure that parts of it are invested, but that's all. And it will stay that way until someone tells him that he is losing a lot of money in the process. Namely, in the form of excessive fees and low returns. Unfortunately, many people are not interested in their savings.

2. The Real Estate Stallion

The real estate stallion thinks that real estate is crisis-proof. He ignores the fact that they are above all, one thing: leveraged. If you take out 80% in mortgages, you will lose half your assets in a price collapse of 10%. Twenty years ago there was a major real estate crisis in Switzerland; on average, real estate lost more than a third of its value. The real estate stallion no longer remembers this.

He is well advised to limit himself to his own home and invest the rest of his capital in other asset categories. Because they don't suffer at the same time as real estate.

3. The Entrepreneur

Entrepreneurs have strong emotional ties with their company. If the companies are doing well, they invest all their money into it. This generates a high return potential. However, it also carries a corresponding risk. Those who have the courage to set up their own company are usually not deterred by risks - which is another reason for the entrepreneur to invest in his company.

However, as much as he is connected to it - he is still a private person. If his company fails, he cannot. That's why he ought to invest part of his investment budget in other companies, or as a liquidity reserve until the prices on the stock exchange are as low as they are now.

4 The Trader

The stock trader has always been fascinated by the stock market. He reads specialist literature and quarterly reports and deals with stock market prices every day. He also reads newspapers for an overview of economic and political developments. His aim is to identify the best stocks, bet on them and thus achieve maximum returns. After all, many have already succeeded. But the chances are still not good, because the trader gets his returns from other traders, as it were - and they in turn from him. This reduces his chances of winning. Trading is, therefore, not for the typical investor, because it takes a lot of time and knowledge - most people do not have both.

5. The Autonomous Investor

The autonomous investor wants to manage his money himself - partly because he does not want to pay any fees to anyone.First he buys an ETF, an index fund. They are cheap. That’s about all they have going for them. They contain a lot of shares that you would never buy, or at least not in this weighting. The autonomous investor will realize this on closer inspection. The SMI, the Swiss Market Index, weights financial companies twofold and pharmaceutical companies fivefold.

So the autonomous investor decides that he not only wants to save fees but also have control over where his money ends up. That's why he invests directly in shares. He finds help on obermatt.com, where he can check the shares in comparison ranks.

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