9/11/2017 0 Comments Something Old, Something NewThis week in ISM, we did our first research assessment regarding the things that we want to learn throughout the year. Because I have some prior knowledge in the field of investments, choosing topics to research and study became difficult. Along with refining my own investment philosophy, I will also expand my study into other types of investment strategies, such as growth, quant, and mutual fund strategies. By becoming more familiar with these different approaches, I will be able to connect with more professionals as well as combine aspects of their theory with mine to create a more efficient and profitable portfolio.
While conducting research for the assessment, I got the chance to go back through some of the classic books for investing, such as Ben Graham’s The Intelligent Investor. I had read these books a few years ago but reading it again really brought me back to the basics of true value investing. Re-reading the chapter over margins of safety made me realize that I was making a crucial mistake in my investment strategy: I was not taking enough risk. Now, most people perceive risk as inherently bad, but a safe level of calculated risk can actually create a much more profitable portfolio. Because I was sticking to obvious, incredibly safe investments, I was giving up some return. Now that I have realized this problem, I can rebalance my portfolio to include some more adventurous assets. In addition to the classical literature of investing, I also started to delve into other historic portfolio strategies. Although I did not go into detail on any one strategy, I was able to get some foundational information for me to build off of later in the year. In addition, I also found that there were many similarities between the new strategies I learned about and my current beliefs. Overall, this week served as a good exercise in combining my previous knowledge with newly learned knowledge to eventually achieve my personal and financial goals.
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