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Finance: What are Investment Objective and Style? 3 Views


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Investment objectives and styles vary from investor to investor. Some are in it for the long haul. Others, um... don't look at "Ponzi" as a dirty word.

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Transcript

00:00

Finance allah shmoop what are investment objective and style All

00:08

right people we all want to make money right Okay

00:11

everyone except that guy Yeah That's everyone's overall investment objective

00:16

Scratch a little further and you'll find that everyone's investment

00:19

goal or objective is a little different Well some people

00:22

want to make a lots of money fast and they

00:24

can risk a lot you know because retirement is right

00:27

around the corner and they've got a prayer on their

00:29

side Some people are okay with making money slow because

00:33

they don't feel comfortable taking a lot of risk Some

00:35

folks want to make money sure but want to invest

00:38

only in quote ethical unquote companies And you got a

00:41

whole bunch of other flavors on down the line Well

00:43

it's a registered investment advisors job to figure out how

00:47

much someone wants to make and how they want to

00:50

make that money risk wise with their investments Not knowing

00:54

this stuff helps the adviser choose the right options for

00:57

their client So what's your investment style Sure you've got

01:01

style that would make kanye west weak but what's your

01:04

investment style like depends on your personality your investment ideas

01:08

And what your goals are and how much you really

01:11

can risk and you afford tto lose everything and start

01:13

all over if things go bust putting all your money

01:16

in whatever dot com well your style might be aggressive

01:19

like you go after stock to think a ll rise

01:22

and rise fast you know like new i pose and

01:25

high growth tech companies and you're comfortable knowing they could

01:28

also go bust and you could also be an index

01:31

or just kind of passive i eat You're not going

01:34

to try to outperform the market you're into long term

01:37

growth so you might want to just be the market

01:40

by an index fund of the s and p five

01:41

hundred Your style might be focused on buying shares in

01:44

big companies and holding them for a long time or

01:47

brian smaller growth e companies and hoping they take off

01:50

but holding them for a long time like not a

01:52

lot of trading not a lot of taxes things just

01:55

kind of plunk along Well you might be all about

01:57

value buying stocks everybody hates when they're on the cover

02:01

the wall street journal which is saying this thing is

02:03

a dog Then you want to buy it because really

02:06

cheap or you might be in a growth like companies

02:08

that don't pay a dividend Maybe they don't even have

02:11

any earnings like amazon Amazon probably the greatest growth stock

02:14

in history barely had any earnings no dividend and it

02:16

just grows you know look at that chart that a

02:18

beauty Well there are tons of hybrids in between all

02:21

of these styles but at the end of the day

02:23

it's all about risk and reward and time And for

02:26

most people the worst thing they khun dio is stay

02:28

high and dry fully out of the investing pool because

02:31

over time the markets go up so no your objective

02:34

know your style and whatever you do don't make kanye 00:02:37.313 --> [endTime] cry

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