The Investor's Profile
In this document we highlight certain key characteristics and attitude of the investor. The investor is not only one that does the investments but also one that picks a team of advisors.
In referring to an investor it may seem odd that we have to define what an investor is. And while it may seem odd it is important to understand that not all investors are the same, especially when it concerns the stock-market.
We define an investor as someone who:
- has a long-term investment horizon
- has a specific return-target
- has done a quantative and qualatative analysis on their targets
- is unemotional towards her investments
With the advent of the internet and discount-brokerage firms, more and more people are becomming "investors". Less of these investors will meet the definition laid out above. The investors that we deal with have
the above qualaties, albeit in varying degrees.
Below we explain these qualities:
- Having a long-term horizon means understanding that an investment decision twill take time to come to fruition
Having a specifc return target ensures that you are focusing your research on investments meeting your criteria
- A valuable investment in your college education can take on average four-years
Doing a qualatative and quantative analysis ensures your understand the risk involoved with trying to meet your goal within your time-frame
- Entering college with a clear goal, will ensure you stay focused and on track to meet your time-frame
Emotions that are in-check provide you with the ability to assess your decision with variables that you may not have been aware of during the earlier stages.
- Reseraching the college you plan to go to and its compatiability with your degree assigns you to a compatabile school
- Analyzing the degree with your future job-prospects ensures your are able to support yourself after graduation
We believe that the investor following these guidelines will be better positioned to assess the ability in her investement decision or those of her advisor.