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What Sort Of Investor Are You?Shane Leonard, CFA
1. The different schools of investing
2. Growth
3. Value
4. Quality
5. What’s best for you?
What we’re going to cover
1. The different schools of investing
2. Growth
3. Value
4. Quality
5. What’s best for you?
What we’re going to cover
The different schools of investing
Strategy
Active
PassiveQuality
Growth
Value
The different schools of investing: passive• A passive strategy is like an admission of defeat
- you can’t beat the market, so you decide to track it
• Or perhaps its better to say it’s a retreat
- you are focused on paying low fees
- you find investing a headache, complicated
• Despite this criticism, a passive strategy
- is entirely sensible & very practical
1. The different schools of investing
2. Growth
3. Value
4. Quality
5. What’s best for you?
What sort of investor are you
• Growth investors like
- growth
- momentum
- buzz
• Growth investors don’t focus on
- valuation
- dividends
Active strategies: growth
1. The different schools of investing
2. Growth
3. Value
4. Quality
5. What’s best for you?
What sort of investor are you
Active strategies: value• Value investors like
- cheap
- cashflow
- the ignored
• Value investors don’t focus on
- growth
- the short term
1. The different schools of investing
2. Growth
3. Value
4. Quality
5. What’s best for you?
What sort of investor are you
Active strategies: quality• Quality investors like
- industry leaders
- stable cashflows
- good managers
• Quality investors compromise on
- growth
- value
1. The different schools of investing
2. Growth
3. Value
4. Quality
5. What’s best for you?
What sort of investor are you
• Majority of people say they look for “quality stocks”
• But typically everyone is either a growth or a value investor
• Don’t kid yourself
- do you want to own hot stocks…
and ride the trend?
- or buy dollar bills for 80 cents…
and play a waiting game?
What’s best for you?
What Sort Of Investor Are You?Shane Leonard, CFA
