Investment Pitfall #1: Not Having an Investment Philosophy
listen now
About This Episode
One of the biggest challenges of investing is being able to stop mistakes from occurring. It’s one of those areas where the winner can be the person that makes the least mistakes.
An investment philosophy that aligns with your goals and personal financial affairs is crucial for achieving financial security. It steers the decision-making process and stipulates how your money will be managed across both good and challenging times.
Especially in challenging times like the current pandemic, high levels of noise make it difficult not to be swayed to make adjustments to your portfolio based on market fluctuations and you’re particularly vulnerable when you don’t have an investment philosophy to guide you.
On this episode, Keith and Marcelo discuss why you need a strategy to avoid making investment mistakes, the components of an investment philosophy, the criteria you need to consider when developing your investment philosophy, the consequences of investing without a philosophy, and more!
Be sure to join us for our next episode where we’ll be continuing the series on the Deadly Sins of Investing by looking at why you shouldn’t build your portfolio based on investment predictions. Thank you for listening!
Key Topics:
- Common investment mistakes (1:27)
- The winner can be the person who makes the least mistakes (2:11)
- The reasons investment mistakes occur (3:05)
- Everyday sources of noise (3:50)
- How mistakes affect your long-term investment goals (5:19)
- Why you need an investment philosophy (5:48)
- How to develop your investment philosophy (6:57)
- Human nature and the need for guiding rules and principles (9:10)
- Linking an investment philosophy to an individual investor (12:07)
- Benefits of having an aligned investment philosophy (13:03)
- Consequences of investing without a philosophy (14:23)
- The impact of not having an investment philosophy in challenging times like these (16:42)
- Examples of erratic investor behavior during the 2007-2008 market decline (18:44)
- How to identify the right investment philosophy (21:10)
- Questions you should ask yourself about your investment philosophy (22:04)
- And much more!
Meet your hosts
Keith Matthews
Partner & Portfolio Manager
Ruben Antoine
Portfolio Manager
Marcelo Taboada
Associate Portfolio Manager
Thanks for Listening!
Be sure to subscribe on Apple, Google, Spotify, or wherever you get your podcasts. And feel free to drop us a line at lawrence@tma-invest.com or 514-695-0096 ext.112
Follow Tulett, Matthews & Associates on social media on LinkedIn, Facebook, and more!
Follow The Empowered Investor on Facebook, LinkedIn, and Instagram
Related Episodes
Raising Money Smart Kids is the Wisest Investment
As parents, we all want to set our kids up for financial success. But how do you teach them about money in a way that sticks? We sit down with Robin Taub, CPA and author of “The Wisest Investment,” to get her expert advice on instilling money smarts from an early age.
Happy Birthday! The Mutual Fund Structure Turns 100
Celebrate 100 years of mutual fund history, tracing their evolution from niche products to investment essentials. Explore their benefits: diversified exposure, easy access to foreign markets, and convenient trading. Confront their drawbacks: high fees, transparency issues, and sales-driven practices.
A Simple, Effective & Stress-Free Way to Invest in the Stock Market
Wondering how you can simplify your investment strategy without sacrificing returns? Tune in as Nicolas Bérubé, an award-winning financial journalist and author, discusses the benefits of a stress-free investment strategy.
Stay on top of your financial education
Subcribe and follow to get updates on important wealth management topics.
Connect
Visit Us
3535 St-Charles Blvd.
Suite 703
Kirkland, Quebec
H9H 5B9
Connect