I'm doing a three-part series on what separates investors. In this first post I discuss what distinguishes most people from "investors". Part 2 covers the distinctions between investors and good investors. Part 3 breaks down what separates good investors from great investors. While there is certainly a lot of reasoning, logic, and mathematical understanding in the industry, the common denominator I see is that investors save, good investors have a plan, and great investors have a plan that matches their needs.

 

Today we are focusing on investors.

 

It's amazing in how many areas of our lives we simply stick with the status quo and avoid venturing out of our safe little bubbles. It makes sense from an evolutionary perspective when venturing out of the cave might have meant encountering a new and dangerous animal, but in our modern world there is so much value in trying something new, or taking on a new challenge. For many people, the world of investing is a scary place that is inundated with numbers, estimates, flashy graphics, and pundits sharing their opinions very loudly. This is an overload and if you haven't got the time to slowly work through everything it can become very challenging to take the first step.

 

That first step is what separates most people from investors. I remember a coach telling me "Never do something half-a**ed, do everything full-a**ed". And while that is a surprising turn of phrase, as I've spent more time on the planet I've also realized that doing something half-way is a better than not doing it at all. And that first step to get investing started is often the hardest step of all, because it is doing something new. 

 

And that is the single difference between investors and everyone else - investors have taken the first step. And it doesn't really matter what your first step into investing is as long as you take it. The first time you try something new it is going to look and feel a little weird, whether that is taking your first steps as a one year old, throwing a frisbee for the first time, learning a new hobby, or buying your first mutual fund. You will learn so much in those first few steps, and as much as you learn about the task at hand, you might also learn something about yourself. Maybe you learn that you find the research really interesting, or that you love seeing the market move everyday, or that you have no interest in markets at all and want to ignore them altogether. Those are all incredibly important things to know and will help you take more and more steps in the future.

 

If you're looking to take the first step into investing, please consider giving me a call.

Pete Galbraith, Investment Advisor & Certified Financial Planner

613-531-2922

peter.galbraith@cibc.com