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investments

Evolution of an Investor

Sometimes during social events or other gatherings a person will approach someone in the financial services business with an opening question: “I hear you do investments. What kind of returns can I expect?” .

The type of questions asked by individuals are usually a good indication of their investing experience. Newer (younger) investors are often more focused on the returns advertized by various investment companies, while more seasoned investors tend to think first about capital preservation and then returns second. In general, seasoned investors tend to focus more of their efforts on understanding the "process" for producing long term investment returns, which usually involve strategies such as dollar-cost-averaging and careful asset allocation.

Evolution of an Investor

It happens during social events, family gatherings or strangers calling into the office. The person will often approach with an opening question: “I hear you do investments. What kind of returns can I expect?” They are often surprised when the response is a counter-question estimating their RRSPs or savings within a few thousand dollars of the actual number.

What is a 'Stock Market' Anyway ?

Imagine it is late Monday afternoon and you are wrapping up your day at a large pension plan, as you stretch, your elbow hits the sell button on the keyboard. The board lot (100 shares) of a large Canadian telephone company is quickly bought for $20 and is the closing price as the final trade of the day. The previous closing price was $30.