What kind of Investor your are?







🔷️The Risk Averse Investor

By birth or made so by prolonged bear markets or past disasters in the market. Seeks low-risk strategies that offer higher returns than safe investments like fixed deposits.

Stories they prefer:

  1. High Dividend Stocks – they resemble bonds by generating income, with the added bonus of price appreciation
  2. Low Price-Earnings Ratios – Safe because they are cheap
  3. Trading at Less than Book Value – at less than liquidation value, have to be underpriced!
  4. Stable Earnings – Typically conglomerates, showing consistent earnings irrespective of business cycle

🔷️The Hopeful Investor

Eternally optimistic in spite of past debacles, believes in the “silver bullet” approach that will beat average investors. The challenge for them is to find that right investment ‘expert

Stories they prefer :

  1. Follow the experts – offer welcome solace from the noise and cacophany in the markets
  2. Stocks always win – if you can get in and out at the right times, especially with long time horizons

🔷️The Greedy Investor

The fuel that drives financial markets. Holds the firm belief that you can get something for nothing.

Stories they prefer :

  1. Fast track Investing – companies that short circuit the long grind to growing big by making high-profile acquisitions
  2. No Risk, Big Profits! – arbitrage from improperly valued assets, including but not limited to derivatives
  3. Momentum – stocks that are going up keep going up and the opposite too. Chartists and technical analysts rule

🔷️The Risk Seeking Investor

How else can one make big returns? Does not believe in anything that looks like a bond, instead seek companies with most “upside” potential

Stories they prefer :

  1. “Great” companies – What Steve Jobs did for Apple, superior management will find ways to turn threats into opportunities
  2. Growth Stocks – High earnings growth can lead to far beyond average price appreciation.
  3. Loser Stocks – companies that are currently out of favour due to missteps like too much debt, misplaced strategy but will come back strong.
  4. Hidden Bargains – find the next TCS, HDFC or MARUTI before they become household names.

Disc – All views expressed are personal and for study and Educational purpose only. Consult your financial advisor before investing.

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