I describe myself as a person with low affinity to book, given my low level of patience & discipline.
But as an investment newbie, one book stands out: Personality Driven Portfolio by Sam Phoen.
Investment Personality
Sam divided investors to 4 key personalities:
- Egoistic Elephant
- Cagey Crab
- Diligent Deer
- Busy Bee
... based on how ones react to declining & increasing investment values.
For example:
- What do you do when your investment is experiencing -23% drop in value? Are you going to sell it or keep it, hoping that the values would go up eventually?
- Similarly, what would you do if your investment is appreciating at +12% in value? Are you going to sell it or keep it to appreciate further?
I've identified myself as a crossover between Diligent Deer & Busy Bee... but I'd like to believe I'm more of a Diligent Deer.
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| Sleepy deer I met in Nara, Japan few years ago. |
Recommended Portfolios
Sam continue by demonstrating how different personality may react given the same market situation & same portfolio - and how each personality may end up in a completely different result.
With that, he recommend a suitable portfolio-mix according to one's investment personality. I won't disclose much here as I'd like to support Sam & strongly recommend you to read his content in details.
Personal Reflection
After reading Sam's book, I reflect on my current portfolio distribution:
... and this is where I hope I can confidently* land by end of 2019:
* Given enough A/B test to understand potential lost & volatility and my reaction to that.
My Verdict
It's a no-nonsense book with very applicative concept & clear examples. I've been recommending this book to everyone I know - even to my DBS banker.
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