Instagram vs Reality: Your practical guide to investing

Instagram vs Reality: Your practical guide to investing

Considering exploring the world of investing?

I recently overheard two people bragging about their biggest winners, the ‘hottest’ stocks in their portfolios. It is astonishing the amount of people that have that one friend who bought Apple shares before Steve Jobs returned or made 100x money on [insert any trending name]. Another phenomenon that continues surprising me is the investment advice I receive on uber journeys. As soon as the drivers find out I am an investment specialist, they are never shy on stock recommendations. I cannot help but wonder if I said I was a surgeon, would they encourage me using a different scalpel? 

So, if you are feeling FOMO (Fear Of Missing Out) or keen to ‘catch the wave’, let me share some reality of investing. Although the Wolf of Wall Street portrays this heavily filtered glamorous image of investment bankers, the reality is very different. Successful investing requires discipline, consistency, rigorous process and zero attachment to either your winning or losing stocks. 

Investing should not be rocket science and I strongly recommend everyone to pay some attention to the stock market. Here are some of my top tips:

  • Set a goal. Why are you investing? Retirement? New home? And on what time horizon?

  • Do your research. Investing legend Warren Buffet said ‘never invest in a business you cannot understand’. 

  • Diversify and balance. Understand your risk parameters and do not put all your eggs in one basket. The rock’n’roll stocks sound exciting, but we have seen the headlines of people putting all their life savings into crypto. Ensure that your portfolio has different asset classes, regions, and sectors. 

  • Discipline. Regularly review your portfolio and goals. Reassess and adjust where necessary. 

  • Master your emotions. Do not panic when investments fall in value (it is part of the journey). 

So, the next time someone brags to you about their top picks in their respective portfolios, ask them to share what other companies they hold. In my experience as a client advisor, I have observed this situation many times: the investors do have a few top wins, but often, their remainder of their portfolio can be full of names in red… 

My final advice - seek help. Many of my clients self-managed their portfolios prior to coming to me. They often concluded that it can be time consuming or even terrifying when the sums increase significantly. 

Sandra Dailidyte
Investing should not be rocket science and I strongly recommend everyone to pay some attention to the stock market.
About the author
Sandra Dailidyte

Sandra Dailidyte

Sandra looks after wealthy individuals and their families. She is based in the Edinburgh office and her clients are mainly in Scotland and London. She advises the families of some of the most successful business owners in the country and seeks to build long-term relationships based on trust and a high-level of communication and service.


Non-Independent Research
The information contained in this article is defined as non-independent research because it has not been prepared in accordance with the legal requirements designed to promote the independence of investment research, including any prohibition on dealing ahead of the dissemination of this information.

How to Use this Information
This article contains general information only and is not intended to constitute financial or other professional advice or a recommendation that any recipient of this information should make any particular investment decision. Always consult a suitably qualified financial advisor on any specific financial matter or problem that you have.
Except insofar as liability under any statute cannot be excluded, neither Brown Shipley nor any employee or associate of them accepts any liability (whether arising in contract, tort, negligence or otherwise) for any error or omission in this article or for any resulting loss or damage whether direct, indirect, consequential or otherwise suffered by the recipient of this article.

Investment Risk
Investing in stocks either directly or indirectly carries investment risk.  The value of equity based investments may go down as well as up over time due to factors such as, market volatility, interest rates, and general economic conditions.

Information correct as at April 2023
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Past performance is not a reliable indicator of future returns.


 
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