As I often say, we tend to forget that when we talk about markets, we’re really seeing the behaviours of real people. Markets are just platforms that let people trade investments.
That’s why market behaviour can seem erratic … because people are. They panic, follow fads, or chase returns that are too good to be true. Within that crowd of investors, there are countless individual personalities, adding even more complexity.
I was having a laugh the other day with a friend about all the investment ‘types’ we know – people who’ve grown their wealth in different ways.
It was a bit of fun, but I wonder if you recognise any of them … or can add to the list?
Clairvoyant Chloe
Much like the mysterious ALDI marketing team – who just ‘know’ when you need a new vacuum cleaner, or a trumpet – Chloe has a knack for predicting market trends.
She brought an air fryer back from a trip to Germany in 2011. Now all her friends have one …
So when Chloe mentions she’s adding a sustainability startup to her portfolio, you follow her ‘inkling’.
Obsessed Owen
Owen loves investing. Like, he really does. So much so that any conversation with him is restricted to financial news – only.
A tree might have fallen on his house in the recent storm, but he’ll talk about the impact on insurance company profits rather than the damage to his house when you run into him at the gym.
He’s also excited to discuss the upcoming RBA board meeting with you!
While on the spin bike, Owen listens to the Masters in Business podcast.
Play-it-safe Petra
Petra always carries a small fold-up umbrella in her handbag. She doesn’t risk it when it comes to her money, either.
Government bonds and ETFs are where she feels comfortable investing. Petra also has 10 per cent of her portfolio in gold – “Just in case there’s a cash crash,” she says.
With voluntary super contributions, Petra has built herself a nice retirement nest egg. She plans on cruising.
Tradie Tom
Tom wears steel-capped boots and parks his RAM TRX on the roof of his cliff-face house. The water views are stunning!
It’s one of many properties he’s built or renovated over the years, and then flipped.
Some investment “suit” – a different kind of ‘tradie’ – helped him to “grow his money” a long time ago.
Tom’s going to his house on the lake this weekend. “Fishing calls, mate”.
Risky Ryan
During the pandemic, Ryan invested in Peloton, a company selling exercise bikes and virtual workout classes …
He’s made some “big gains”, though mainly in meme stocks, crypto and tech startups – well, the ones which haven’t tanked, that is.
Ryan is hoping to use his kid’s education fund – which Jess, his wife, has told him he can’t touch – to invest in a new caffeinated drink company.
“It’s a winner, a sure thing,” he’ll tell her when she gets back from her ‘holiday’. He’s made dinner reservations at her favourite restaurant to discuss it.
Jess is on a wellness retreat – she picked the ‘stress detox’ package.
Ethical Emma
Emma is picky when it comes to which companies she’ll ‘support’ financially.
Those with strong environmental and social ideologies, as well as a decent number of women on the board, are Emma’s cup of tea – herbal, of course. She recently bought shares in offshore wind energy.
“100 per cent renewable,” she told her nature tech business partner.
Loaded Louis
Louis lives in a six-bedroom house on Sydney’s North Shore with his family and a cavoodle named Toby. His kids go to the nearby elite private schools.
Louis comes from ‘old money’ and drives a Lexus, rather than a Porsche – money isn’t for show, he feels.
His main investments are in the ASX and property, of course. But no one knows how many he has.
Louis retired at 48 to, “Spend more time with the family and my golf clubs.”
CEO Cate
Cate started her first online company when she was 21. She had a genius idea which she bootstrapped. Back then she worked a day job, building her business part-time after work.
When she was able to monetise it, she left her job, later employing staff – not that that stopped her from working 90-hours a week.
Cate sold that business for an eye-popping profit. When she did, though, she had two others in the works – one that would eventually go global.
Although Cate could retire and travel the world, she’s not. “Too busy,” she says.
Tightarse Tim
Tim has made his money in real estate, but also by being a bit of a stickler. He doesn’t “waste” money on food when he can cook at home and he’ll only ever have one streaming service at a time.
Tim saves on EVERYTHING. He’ll use comparison websites to find the best deals, then negotiate even more off. He refinances regularly, budgets, doesn’t auto-renew anything (“such a scam”) and drives an EV.
Tim bought his first property at 25. He’d saved the deposit himself.
What type of investor am I?
I think I might be a mix of Owen, Cate and Tim. But definitely never a Ryan! I don’t think Libby would have married me if I was.
Can you find yourself in the list?
