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Finance: What are Investment Objective and Style? 3 Views
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Investment objectives and styles vary from investor to investor. Some are in it for the long haul. Others, um... don't look at "Ponzi" as a dirty word.
- Social Studies / Finance
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Transcript
- 00:00
Finance allah shmoop what are investment objective and style All
- 00:08
right people we all want to make money right Okay
- 00:11
everyone except that guy Yeah That's everyone's overall investment objective
- 00:16
Scratch a little further and you'll find that everyone's investment
- 00:19
goal or objective is a little different Well some people
Full Transcript
- 00:22
want to make a lots of money fast and they
- 00:24
can risk a lot you know because retirement is right
- 00:27
around the corner and they've got a prayer on their
- 00:29
side Some people are okay with making money slow because
- 00:33
they don't feel comfortable taking a lot of risk Some
- 00:35
folks want to make money sure but want to invest
- 00:38
only in quote ethical unquote companies And you got a
- 00:41
whole bunch of other flavors on down the line Well
- 00:43
it's a registered investment advisors job to figure out how
- 00:47
much someone wants to make and how they want to
- 00:50
make that money risk wise with their investments Not knowing
- 00:54
this stuff helps the adviser choose the right options for
- 00:57
their client So what's your investment style Sure you've got
- 01:01
style that would make kanye west weak but what's your
- 01:04
investment style like depends on your personality your investment ideas
- 01:08
And what your goals are and how much you really
- 01:11
can risk and you afford tto lose everything and start
- 01:13
all over if things go bust putting all your money
- 01:16
in whatever dot com well your style might be aggressive
- 01:19
like you go after stock to think a ll rise
- 01:22
and rise fast you know like new i pose and
- 01:25
high growth tech companies and you're comfortable knowing they could
- 01:28
also go bust and you could also be an index
- 01:31
or just kind of passive i eat You're not going
- 01:34
to try to outperform the market you're into long term
- 01:37
growth so you might want to just be the market
- 01:40
by an index fund of the s and p five
- 01:41
hundred Your style might be focused on buying shares in
- 01:44
big companies and holding them for a long time or
- 01:47
brian smaller growth e companies and hoping they take off
- 01:50
but holding them for a long time like not a
- 01:52
lot of trading not a lot of taxes things just
- 01:55
kind of plunk along Well you might be all about
- 01:57
value buying stocks everybody hates when they're on the cover
- 02:01
the wall street journal which is saying this thing is
- 02:03
a dog Then you want to buy it because really
- 02:06
cheap or you might be in a growth like companies
- 02:08
that don't pay a dividend Maybe they don't even have
- 02:11
any earnings like amazon Amazon probably the greatest growth stock
- 02:14
in history barely had any earnings no dividend and it
- 02:16
just grows you know look at that chart that a
- 02:18
beauty Well there are tons of hybrids in between all
- 02:21
of these styles but at the end of the day
- 02:23
it's all about risk and reward and time And for
- 02:26
most people the worst thing they khun dio is stay
- 02:28
high and dry fully out of the investing pool because
- 02:31
over time the markets go up so no your objective
- 02:34
know your style and whatever you do don't make kanye 00:02:37.313 --> [endTime] cry
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