Opinion – Grain in Grain: Find out if you are an adventurer or an investor?

Recently, I saw an advertisement with the sailor Amyr Klink and I noticed a great relationship with the investments. In the ad, Klink comments on the confusion people make regarding his behavior in the projects he has carried out. A similar mistake is made by individuals when it comes to investments.

I have read several of his books and attended some of his lectures. All exceptional.

However, there is a problem when we read stories like his. As we do not know exactly behind the scenes, we believe that they were legal adventures, but we were not able to quantify exactly the risk and problems faced.

Even when he narrates the “chokes”, because we know that the result was positive, no one can imagine the size of the perrengue. And we have an image in our heads: it was really cool.

I imagine that if the endeavors narrated by Klink weren’t so expensive, there would be a lot of people venturing out for the simple desire to feel that adrenaline and the simplicity in the way he narrates.

The big problem with investments is that this cost barrier does not exist. Thus, many individuals venture into the most diverse risks, influenced by success stories that sometimes are not even true.

As Klink says, “people say I’m an adventurer, but I don’t consider myself, because everything I do is extremely planned and studied”.

Imagine the work Amyr Klink has put into each of his ventures. Now answer the following questions related to each of these projects:

Do you believe he had a very well-established goal?

Do you think he weighed and calculated the risk of every available alternative?

Do you understand that the success he achieved was the result of a meticulous planning of the routes to be covered?

Do you believe he has teamed up with experienced people to help him and supplement the knowledge and skills he lacked in planning?

Do you believe that he made sure that the products he took on board the vessels were the most appropriate to achieve his objective?

Do you think he was concerned about the safety of the assembly and maintenance of his vessels?

Almost every day, I see stories of people who have fallen into traps or who have lost large sums in adventures in the financial market.

I’m sure these same people would answer “yes” to all of the above questions if they thought about Amyr Klink. But if they were to self-assess their investments, they wouldn’t have the same answer.

The same questions apply to your investments. Just change the word vessel in the questions for your investment portfolio.

Do your self-assessment now. Regarding your investments, would you answer “yes” to the above questions?

Reflect on your investment behavior and assess whether you are behaving like an adventurer or an investor. Changing this behavior is essential to not sink in the current volatility of the financial market

Today’s Lessons:

1 – Most individuals are disappointed or lose, as they behave like adventurers with their investments;

2 – On a trajectory, such as the path to retirement, proper planning is essential;

3 – Making sure about the risks of each of your investments and the aggregate portfolio is essential to navigate rough seas like the one we live in.

Michael Viriato is an investment advisor and founding partner of Investor’s House

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