The following is an interview with Kevin, who’s an investor.
1. So tell us a little bit about yourself. You don’t need to get too detailed. E.g. How old are you, what country do you live in, do you have a family, etc.
I am Canadian, nearly 30, and living with my girlfriend. No kids yet, but I think that will come soon in not too long from now.
2. When did you start investing? What age? Year? Why did you start investing?
I started investing a couple of years before I graduated, when I was doing internships and just managed to scrape together a couple of thousand dollars to save and put away. I picked it up once I graduated and found a full-time job. I started investing so that I could put money away for the long term and let it grow.
3. So what kind of an investor are you? Are you just trading your pension fund, or are you a full time investor? Approximately how many positions do you like to have at a time? Typically, how long do you hold each investment?
My friend jokingly refers to me as an “index hugger”. That should tell you all that you need to know. 😉
4. What is your investment philosophy? I mean, what kind of an investo are you – fundamentals, technicals, trend following, computer trading, etc?
I prefer to look at fundamentals and follow an approach based on asset rebalancing and broad market indexing.
5. So would you call yourself a successful investor? What kind of investment returns have you experienced on average? How have your investments performed over the past few years?
I have no idea. I’ve only really been putting a decent amount of money away for 3-4 years, so it’s too early to say. I’ll consider myself a successful investor if I at least come close to the market’s return.
6. Can you tell us about your biggest investment failure? Why you chose that investment, what went wrong, and what you learned?
My biggest investment failure was probably investing in PMT.TO. Unless and until natural gas turns around, that one is a sunk cost.
7. Now, on the flip side, can you tells us about your biggest investment success? Why you chose that investment, what went right, and what you learned?
My biggest investment success has been investing in index funds. I’ve spent the least time and headaches, while I’ve gotten the best long-term returns from this type of investment. I’ve learned that investing doesn’t need to be a pain — it can be as simple as finding a broad index with a low fee, and rebalancing when it’s time.
8. Now this question is totally optional. What do you consider to be the biggest investment lie. For example, I believe the biggest lie is “insiders are buying, hence you should buy too”
I consider the biggest investment lie to be that investments always go up forever. I believe that, along with investments, we also need to build up side income and work at getting out of the rat race in order to truly achieve freedom. In the long run, there’s a pretty good chance that you’ll get a good return out of the markets, but it’s better if you’re not completely dependent on that.
So Kevin would invite you, my readers, to read the following three articles to learn more about his investment philosophy.