The way I see it, there are two main types of investors: protective and ambitious.
That is to say, conservative and aggressive.
There’s no bad type of investor — except for the uneducated investor. If you do your due diligence and make investment decisions that are appropriate for your goals and portfolio, you’re on the right track.
What’s the Difference?
An ambitious (or aggressive) investor will invest their money in opportunities for the highest returns. Their goal is to make money and they’re willing to assume more risk to get it.
On the other hand, you’ve got protective (conservative) investors who also want to make money, but are willing to achieve a lower return for more peace of mind and less risk. They are typically the savers of the bunch.
If there’s one thing I’ve learned in the world of investment, it’s that both have their time and place, and you can be BOTH types of investors.
That’s right, you don’t have to choose. You don’t have to put yourself in a bucket, stick on a label and say, “this is the kind of investor I am, and that’s just that.”
The Protective Investor
There’s no one size fits all model, but there are a handful of traits that conservative investors have in common.
For instance, conservative investors invest their money so as not to put their principle at risk.
That is, they don’t want to take any chances on what they’ve already put in. Their strategy is relatively low-risk and they look for product or opportunities that don’t fluctuate in value and offer a fairly reliable outcome.
One benefit of this investment strategy is the ability to take your money out more quickly, either due to an economic downturn or when you just need cash ASAP.
A common misconception is that conservative investors are generally an older crowd. They’re not messing around with their retirement dough!
In my opinion, your investment strategy shouldn’t be solely contingent on age. Which takes us to our next type…
The Ambitious Investor
Ambitious investors are natural risk-takers, but not reckless. More often than not, an ambitious investor has to be more patient and more diligent because there is higher risk involved.
Investing is hard work; and ignorance or lack of information won’t get you where you want to be. An ambitious investor, to an extent, has to have more emotional stability and trust than a protective investor.
Where the ambitious investor can fall victim to the game is in having overconfidence or over-aggression.
They don’t know when to slow down or when to say no. When all you can see is dollar signs, your judgment subsides and you’ll make decisions that are not in your best interest.
On the other hand, the ambitious investor isn’t shy about diversification or risk; and with the appropriate due diligence and research, they are more likely to reap a bigger reward.
The Secret to Profitable Investing
Two simple words: due diligence.
No one can do it for you! You’ve got to put in the time and effort to make investment decisions that align with your goals.
If You’re Ready, We’re Here.
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