What is Eclectic Investing?

As I have mentioned before, the theme of the book I´m currently working on is the same as the theme of this blog, “eclectic investing”.

So, we should start by defining what eclectic investing is.

Eclectic investing, to me, is a compilation of the best strategies and methods from different investment disciplines that are put together to form a personalized investment system which is created to play to the investor’s strengths and weaknesses.

If you enjoy investing in real estate, it should be part of your investment system. If you know how to research equities and like investing in stocks, you should include them in your investment model.  On the other hand, if you are not comfortable valuing options, then options should be avoided.

Why invest eclectically?

If you are an eclectic investor you will have a selection of investment options for different market environments.   An eclectic investor makes money in all types of markets and can identify more opportunities than the average ones.  Also, they are better at handling risks.

Advantages of eclectic investing:

• Ability to make money in the market regardless its direction (bullish or bearish)

• More investment opportunities

• Improved risk management thru better portfolio diversification across asset classes.

• Tailored to the investors strengths and weaknesses

Now that you know the definition of eclectic investing (WHAT), reasons for doing so (WHY), future posts will address the HOW.

I will be sharing ideas on building a framework to evaluate markets, measuring and limiting risks, and selecting investments with the best chances of creating profits.

Thanks for reading.  Have a profitable day!

 

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