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:
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.
Investing should not be rocket science and I strongly recommend everyone to pay some attention to the stock market.