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Everyone has a plan…

Written by Taco te Gussinklo | 5 minutes
TUE 23-07-2019
It could be just a simple one, but everyone should have a plan when it comes to investing.  I know some investors that carry physical files of company information everywhere they go. They follow every movement of the company and base their investments on this. I also know people that only use one quick news item to buy (or) sell a position.
Although there is a lot of difference between those two investors, both do have a plan.   

It would be even better if that plan is tailor-made for the investor and has been adjusted based on the specific experiences of that investor. Although there are some useful guidelines for all investors, every tool and every strategy must suit that specific investor. For example how much time you want to spend investing, what type of investment you want to invest in (and what is your level of knowledge), and of course what are your goals and what is your risk appetite. 

Everyone has a plan until they….
The full phrase is Everyone has a plan until they get punched in the face and (boxer Mike Tyson). I think when investing this rings just as true. (fortunately not literally……). Even with the best prepared investment strategies – the world and especially the stock markets will always have surprises around the bend for you. Why not have a plan ready to deal with those situations.

Warren Buffet: be prepared to lose 50%
Warren Buffet (seen by many seen as the world’s most successful investor), warns the shareholders of his investment fund Berkshire Hathaway: Become rich? Be prepared to lose 50%*. And actually that has happened several times, in good as well as bad markets. Overall though, the end his result from 1965 and 2017 doubles the result of the S&P500. Is losing 50% no option for you, than is this strategy not good for you.

Your own tailor-made investment plan is something that can help you in turbulent markets and saves you time by not having to rethink every position or strategy as you just stick to your plan.

Be a bookworm
If you’d like to read more books related to investing, please visit our library in our office BinckBank in Marbella. You are welcome to borrow our books on investing and economy, as well as some novels if you have some spare time! Although you will need your own strategy with investing – it is good to be prepared with sufficient knowledge!


Taco te Gussinklo

Taco was an active investor with BinckBank before he joined the team. He also writes finance columns for several magazines and websites. “Investing becomes much more interesting when you have enough knowledge. When I investigate my columns I always find a subject that will be useful to our investors so that they can put it into practice.” 

The information in this article should not be interpreted as individual investment advice.  Although BinckBank compiles and maintains these pages from reliable sources, BinckBank cannot guarantee that the information is accurate, complete and up-to-date. Any information used from this article without prior verification or advice, is at your own risk.  We advise that you only invest in products that fit your knowledge and experience and do not invest in financial instruments where you do not understand the risks. 

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