Personality-Driven Portfolio , livre ebook

Marshall Cavendish International - Sam Phoen

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99 pages

English

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Description

Constructing an investment portfolio is not a "one-size-fits-all" undertaking. Every investor has his or her own personality. Successful investing begins with knowing yourself - knowing how much risk you can take, the amount of time you can spend, your personal strengths and weaknesses, etc. What works for your friend, or your advisor, or Warren Buffett, may not necessarily work for you. Following them blindly can lead to a disastrous mismatch with your own style. In Personality-Driven Portfolio, author Sam Phoen approaches this problem from a revolutionary angle. Through a series of questions, the reader is first shown how to evaluate his/her investment personality: "Am I an Egoistic Elephant, a Diligent Deer, a Cagey Crab, or a Busy Bee?" Each personality type needs to take a different investment approach. A portfolio that suits the Egoistic Elephant, for example, will turn the Busy Bee or Cagey Crab into a nervous wreck! Targeted at investors at all levels of experience, this book is a practical guide on how to put together a "bespoke" portfolio, and on top of that, how to manage and rebalance the portfolio when necessary, so as to produce sustained results over the long term.

Sujets

Sociologie, société et politique

Personal finance

Psychology

Informations

Publié par	Marshall Cavendish International
Date de parution	16 août 2018
Nombre de lectures	0
EAN13	9789814828901
Langue	English

Informations légales : prix de location à la page 0,0600€. Cette information est donnée uniquement à titre indicatif conformément à la législation en vigueur.

Extrait

PERSONALITY-DRIVEN PORTFOLIO
Personality Driven Portfolio looks at how retail investors can do better by adopting investment styles that play best to their personality types. Instead of proffering impersonal one-size-fits-all advice, the author advocates an approach to long-term investment success that recognises who we are as unique individuals and how we can tilt the odds in our favour despite behavioural biases driven by our innate attitudes towards risks and rewards. A refreshing addition to the literature on smart personal investing.
- D R S UNG C HENG C HIH , CEO, Avanda Investment Management Pte Ltd
This book is particularly suitable for investors who despite having a good knowledge of financial instruments are not quite able to enjoy their investing journey. The missing element is often not factoring your personality into your investment process. Sam has done a good job in summarising the main personality types and he will show you how to match your personality to your portfolio construction. You should be able to see a distinct change in the quality of your journey after reading his book.
- G ERARD L EE , CEO, Lion Global Investors (a member of the OCBC Group)

2018 Sam Phoen and Marshall Cavendish International (Asia) Pte Ltd
Published in 2018 by Marshall Cavendish Business
An imprint of Marshall Cavendish International

All rights reserved
No part of this publication may be reproduced, stored in a retrieval system or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the copyright owner. Requests for permission should be addressed to the Publisher, Marshall Cavendish International (Asia) Private Limited,
1 New Industrial Road, Singapore 536196. Tel: (65) 6213 9300
E-mail: genref@sg.marshallcavendish.com
Website: www.marshallcavendish.com/genref
The publisher makes no representation or warranties with respect to the contents of this book, and specifically disclaims any implied warranties or merchantability or fitness for any particular purpose, and shall in no event be liable for any loss of profit or any other commercial damage, including but not limited to special, incidental, consequential, or other damages.
All examples and analysis in the book are provided for illustration purposes only and should not be considered as specific investment advice. Investment in securities involves the risk of loss. Past performance of investment products is not necessarily a guide to future performance. Any reliance placed on the information herein is strictly at the reader s own risk. The author will not be held liable for any losses arising out of the use of the information.
Other Marshall Cavendish Offices:
Marshall Cavendish Corporation. 99 White Plains Road, Tarrytown NY 10591-9001, USA Marshall Cavendish International (Thailand) Co Ltd. 253 Asoke, 12th Flr, Sukhumvit 21 Road, Klongtoey Nua, Wattana, Bangkok 10110, Thailand Marshall Cavendish (Malaysia) Sdn Bhd, Times Subang, Lot 46, Subang Hi-Tech Industrial Park, Batu Tiga, 40000 Shah Alam, Selangor Darul Ehsan, Malaysia
Marshall Cavendish is a registered trademark of Times Publishing Limited.
National Library Board, Singapore Cataloguing-in-Publication Data
Names: Phoen, Sam.
Title: Personality-driven Portfolio: How to invest right for your style / Sam Phoen.
Description: Singapore : Marshall Cavendish Business, 2018.
Identifiers: OCN 1039708191 | eISBN 978 981 4828 90 1
Subjects: LCSH: Investments. | Portfolio management.
Classification: DDC 332.6-dc23
Cover design by Lorraine Aw
Printed in Singapore
CONTENTS
Preface
Introduction
I. UNDERSTANDING YOUR PERSONALITY AND NEEDS
1 Knowing Yourself
2 Defining Your Objectives
3 How Personality Affects Returns
II. CONSTRUCTING YOUR PDP
4 Stock Strategies
5 Your Equities Portfolio
6 Applying Investment Management Style (IMS)
7 Your Fixed Income and Cash Portfolios
III. MANAGING YOUR PORTFOLIO
8 Money Management and Rebalancing
9 When to Sell
10 Keeping your Portfolio Balanced
Preface
I T FEELS LIKE a long time since my first book, High Net Worth Investing: How to Grow your Wealth through Practical Asset Allocation , was published. That book was written to share my experiences from three different perspectives - that of a bank s Relationship Manager, an Investment Product Structuring Specialist, and a High Net Worth customer.
I had these different perspectives as I was fortunate enough to be involved directly or indirectly in several functions in a bank, a hedge fund, a sovereign fund, as well as being a customer of several priority and private banks.
Besides sharing my experiences, that book was written with the hope of raising the financial literacy levels of high net worth retail investors. Two months after publication, the book launched an interesting path for me as a trainer/coach. I started coaching on topics like Asset Allocation for individuals, how to feel investment products from a retail investor s angle, and soft skills for dealing with challenging conversations.
As I coached and shared more in courses and seminars, I became more intrigued by what retail investors really need.
With increasingly rich and volatile markets after long periods of steady rises, investors are finding timing the markets to be especially challenging. They are warming to the idea of Asset Allocation to diversify their risks, and starting to ask how to construct portfolios beyond just punting in the markets. As for those investors who have already put together portfolios of their own, I see some of them struggling with portfolios that although seemingly suited to their basic profile, are simply not compatible with their investment personality.
This book is inspired by these investors.
In writing this book, I have again used my experiences from three different perspectives. This time the three perspectives are that of Long-Term Investor from my experiences in GIC, that of an active Short-Term Trader from my experiences in a hedge fund, and that of a Retail Investor from my personal experiences as one!
From these perspectives, I have formulated a practical portfolio construction process that s suitable for most retail investors to tailor to their own unique investment personality.
I am grateful to many people for their help. I would like to thank my friend Pang Cheng Duan for his valuable feedback on Fixed Income portfolio construction. Thanks also to Lisa, Stanley and team from Phillip Securities for providing me with the beautiful stock price charts for illustrations. Special thanks to my family and friends who have never stopped supporting me in whatever I do.
It is my sincere hope that this book will set investors on the right path to constructing customised portfolios that can stand the test of time.
Introduction
C ONSTRUCTING A PORTFOLIO is easy. Just open a trading or brokerage account, then start buying what you like with the money you have set aside. Done!
If only it was so simple.
How to build the perfect investment portfolio - that s a headline that s seen in so many personal finance and self-help articles. But building an investment portfolio is hard enough; is there really such a thing as the perfect investment portfolio?
At the CFA-Singapore Exchange Portfolio Construction Conference held on 24 February 2018, the audience was asked in a live poll for their views on the biggest investment challenges they faced. Here are the responses they gave:

I don t know what makes a good portfolio or how to construct one
44.6%
I don t know what s happening or how to analyse the market
26.8%
I have no time to track stock prices or manage a portfolio
19.6%
Other issues
5.4%
No challenge, I m perfectly fine
3.6%
Topping the list is: Don t know what makes a good portfolio or how to construct one. This response is consistent with the kind of questions I receive as an advisor. One of the most common questions I get goes like this:

The need for Asset Allocation is clear. Now, what do I do next? How do I construct my portfolio?
Quite clearly, many retail investors still need help to move from an Asset Allocation plan to actually constructing the personalised portfolios that will meet their intended objectives.
Constructing a portfolio is far more than opening a brokerage account to buy and sell. Those are just the administrative tasks that need to be done. Constructing a portfolio is also more than just following a standard set of steps to buy stocks and bonds based on your risk appetite and return objectives. The difficulty lies in the fact that standard steps simply don t work because everyone is different! In other words, the perfect investment portfolio doesn t exist.
Everyone s investment behaviour is shaped by prior life experiences. It could have been shaped during your growing-up years, when your parents said you should save for a rainy day (it s funny, though, that few parents say invest for a rainy day ). It could have been an experience lending money to a friend and not getting it back. It could also be influenced by your experience during the Global Financial Crisis, for example, when you could have made or lost a lot of money.
These experiences tend to stick in our minds, and combined with each individual s unique personality, we can understand why we all react that little bit differently when faced with the same investment scenarios.
The most distinct difference between a successful professional portfolio manager and a typical retail investor is seen in their behaviours in taking profit and cutting loss. A typical retail investor tends to buy on hope, and is generally quick to take profit when right, but hangs on to a losing position when wrong, hoping for it to turn around. A typical professional manager tends to buy based on extensive research, and cuts his losses decisively when wrong.
Consider your own behaviour. How do you tend to act whe