4 archetypes of investors

Profile photo of Loïc Schmid

I wanted to share with you a couple of observations i made through the years on investors.

Hope you will enjoy !

The cover my ass guy

  • Throws at you huge and complicated boring theories about markets and the economy
  • Is a super trend-follower but often denies it
  • Is always overweight when markets go up and underweight when markets go down
  • Will go 1% max underweight the benchmark – wow
  • Performs like the benchmark

Conclusion: makes money in up years and… loses money in down years 🙂

The fuzzy-buzzy

  • Thinks he’s super smart
  • Will always be in the buzzy stories like oil when there is a OPEC meeting or Samsung’s Galaxy Notes’ fiasco
  • Is always behind the curve and will never learn from past timing mistakes
  • Goes short when it’s too late/low, and buys when it’s too late/high

Conclusion: makes money in the first hour, then panics and closes position at a loss.

Captain obvious

  • The one that knows precisely what will happen because it’s sooo obvious
  • The one that figured everything out already before the others
  • The one that – funny enough – panicked  and sold everything the day after Brexit, Trump and Italy’s referendum…

Conclusion: when it’s obvious, it’s obviously wrong 🙂

The succesful entrepreneur

  • The one that you love having conversations with
  • Often very street-smart and down to earth
  • Does not go into complicated useless explanations
  • Bought Apple shares before the introduction of the first iPhone, bought Tesla shares in the beginning and bought European bluechips after Brexit, Trump and Italy’s referendum

Conclusion: makes good returns

….

Final word

There is no magic recipe  however, buying undervalued quality assets is always a good deal and selling overvalued and/or overcrowded fantasy stuff makes a lot of sense too.

Which brings me to the conclusion that one should think twice before joining the current Trump equity rally which is based – for the time being – on pure fantasy !

Safe investing,

Loïc Schmid

 

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