Happy New Year! I apologize for not writing more in the past couple of weeks. I’ve been quite busy doing some eclectic investing. I can’t tell you what I’ve been investing in right now since I signed a non-disclosure agreement.
This year, I have a lot of things going on. I’m working on improving the returns at my hedge fund, also the undisclosed investment where I’m an activist board member, and writing the new book. I’m planning on writing shorter blog posts but hopefully more often.
The morning I was reflecting on the different investment styles and how they develop. I think it has to do with your level of patience and risk tolerance.
When I was in my 20’s I wanted to make money fast, I was a aggressive growth investor. I used to seek out risks. I was greedy.
In my 30’s I became more balanced in my approach, I had just gotten burned big time (i.e. I lost money in the first internet boom and bust). I was still in the equity markets, but was also investing in small businesses. I had quit my corporate job. I also dabbled in real estate.
Now in my 40’s I’ve transformed again into a more eclectic investor. I am now versed in multiple investment vehicles: real estate, small businesses, equities, options and commodities. I would probably label myself as a value and growth investor now. I seek out undervalued investments and growth at reasonable prices.
It helps to reflect on your pasts investments periods and identify the kind of investment styles you’ve done in the past. Find out in which you feel most comfortable, and which you really don’t like. If you haven’t tried something, then try to learn it. To be eclectic you should try to be good at different styles of investing. I was just listening to “How to Fail at Almost Everything And Still Win Big” by Scott Adams the creator of the Dilbert cartoon. He says that he wasn’t great at anything, just good at enough complementary things that when combined made him successful.
In investing, you should be good enough in several investment areas that when combined makes you a solid investor.
I’d appreciate your comments. Let me know if you ‘d like me to elaborate some more on the investment styles. I realize that this isn’t my best writing, but it will have to do for now as I don’t have much time. I’m ready for a great 2014.