Which type of investor are you?

Through my 13 years of investment experience, I have concluded that there are typically 3 types of investors.

Category 1
This is a very hands-on investor. They do all the research in the companies and markets by themselves. They have absolute interest and time to invest. They love to have full control of their investments and they know how to control their emotions when markets swing even as fear and greed sets in. They’re exactly able to invest like Warren Buffet. Only 1% of the world’s population will be in this category. They know exactly what strategies to adopt when market conditions turn either ways. However, this group have large blindspots which they never think about in protecting their assets when health changes. Transferring wealth with minimal complications are hardly thought about since they are very investment focused which might cause future problems down the road. The biggest downfall for this group of investors is that they assume they know it all.

Category 2
This is a combination of a full hands-on and hands-off investor. Whilst they want to have some control, they know they do not know have all the answers. Some start off as category 1 investors and after 5-10years of investing by themselves, they realize they are not getting anywhere. This is when they turn to some professional help.
They have some interest and some time but identify that they may not be able to manage it all by themselves especially when markets swing. Amateur investors who try it by themselves end up badly burnt and never want to enter the markets again or they do investments based on managed risks. They might need some help but have no trusted source to turn to. This group of people want to be able to journey with a trusted advisor to help them to clarify their decision making. They are also willing to pay fees to seek help because they have gone through the pain of trying out on their own.

Category 3
This is a hands off investor. They do not have the time or interest when it comes to investments. So they will not have any interest in researching or reading up. This group just live their lives on a month to month basis and it is paycheck to paycheck. They are stuck in a rat race and have no solutions to do something about it. They might have a desire to change their lives but the mundane life takes over and they only wish for a better way out. They hope and rely heavily on the government to help them out.

Which type of investor are you? If you are the category 2 type of investor, be open and have a chat with an experienced financial advisor who can journey and guide you through the ups and downs of life.