First of all happy national day for everyone.
Although it falls on a Saturday, I think the national day means different things for different people. But for many you hopefully get a good rest.
I recently received a question from a longer time reader. The majority of his question is this:
I notice that your investment approach has evolved these years, especially after you have become a member of Providend. You evolve from compiling mainly with the help of dividend shares and undervalued shares, to the use of much more diversified ETFs nowadays.
I understand from the literature of providing the benefits of using a minimal Alfa -diversified portfolio for the busy professional or people with financial knowledge. However, you are one with excellent financial knowledge and you clearly enjoy your own research.
Please help me understand why you are evolving to this investment approach, from your personal point of view.
I think this might be something that readers think about, but it will be interesting what goes through how they look at it. Just like if we present the financial situation of a few, there can be many interpretations.
My colleague but also my designated wealth adviser in Providend (as a company benefit) Isaac I asked me personally a few days ago: “Why did you switch the wholesaler? Do you know for many people that you fit in the personal profile that we will probably influence the least to see from our investment perspective?”
My colleague Pair of scissors gave a rather chill internal introduction to all our colleagues and while we went back home our way, he complained that he wanted him to spend more time to share more about his deeper thoughts why he made the same switch as I dive into fundamentally in fundamental investing for so long.
I thank my reader for his question, but admitted that my answer to him is quite short. I had the whole ride from Outram to Buangkok to explain to Sudhan why more of his team members in his advisory team would benefit from hearing his experience.
But I spend the longest time explaining the context, my thinking process, which led to my decision, the struggles, the nuances to Isaac because he is willing and open to listen and also because I feel strong that he has to hear from my perspective and process my words himself. I shared that when when My podcast interview With my CEO Chris came out, some people think it would be bad enough that someone would all turn into only ETFs that they confirm privately if that really happens.
I don’t want to explain too much why I did it again today because I am too lazy to type out. If someone wants to learn this, I am always willing to share, but it is only that if people do not want to hear, I would not like to be that person who will continue to tell people about it.
I think if they can really process that, this will enable them to have a deeper bond with their customers, prospects.
If you don’t have a deep enough connection, it is like a downside in someone’s eyes in a technical financial area. It is a big downside if that area … an area is close to someone’s heart.
If a customer or prospect shares how they invest in a portfolio of individual shares is better and show that they have faith in how they invest and have achieved good resultsI will hear another version of the same spuwing. I met my considerable part of the advisers who want to sell things to me during my time as an individual investor and also hear some of what is presented during consultant conferences.
Many lack the confidence to have the conversation.
Usually it ends as if your efficiency of investing is good, then you can do it alone. But I can help you with other services that are not about investing.
I wonder why these advisers do not have the confidence to enter into a deeper conversation with the customer or prospect about how they invest. I understand that this is sometimes a meeting time and space – things that could prevent an extensive discussion, but I think investors who are deep in their profession will feel a connection with someone who is not afraid to venture into that part of investing.
One of the reasons is a personal lack of competence, or what you say sounds stupid for others who know their profession. Of course, people feel less confident to venture to that conversation. If we do not build a connection there, we would not get their investment assets. That is why I think Sudhan has less common skills than his colleagues with whom he can build and harvest a unique customer base.
People share and convince that your way of investing might be better for the life you want to go is a difficult matter, but in the end it can also be more worthwhile financially.
If you manage to show a person from your perspective, there may be a tilt to their degree of conviction that it is ready to make the top -ups. After all, who does not want to refill what they know is the best strategy there is, in fundamentally healthy instruments?
When we were about to step out of the MRT train Sudhan and I investigated what I think is the most vital part of the discussion.
Sometimes we know where the defects of our current investment strategy, but we do not have enough vulnerability to admit that. And the reason we do not change and adhere to something that still works, but is less compatible with our lives is also because we did not know that there are better strategies that will also help us achieve our financial goal. The combination of these two is perhaps why many do not switch.
Those with sufficient introspection and vulnerability would eventually start looking.
But you have to speak in their “investment steel” to show them that there are other ways to express that investment philosophy, but in the end it becomes really passive.
There are some hard meta portions that are difficult to write that investors may have to endure. Being vulnerable enough for yourself is perhaps the first step in trying to find out and I want to do that for both Sudhan and Isaac, so that they can be introspective enough about the meta part.
I shared with my Havend colleague Joanne that we usually know a little if there is something more … Good or wrong in our belly, but that may not really help us unless we discover things and see things as it is. Usually these are less popular and they are discussed on subject such as “How should we make planning for an evolving life when most of the insurance recommendation feels as a recommendation with a Snapshot view?”
It may not be easy for each of us to merge things (if you are someone who is interested in the subject), but as if it is a good idea to be your own retail fund manager, there is value to tackle the hard things.
And the first step is vulnerable enough so that it becomes strong enough that it forces you to take on that challenge.
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You can read more about my thoughts about interactive brokers in These interactive brokers Deep Dive series, Starting making it easy and financing your interactive broker account.
Kyith is the owner and some writer behind investment canals. Readers coordinate investment canals to learn and build stronger, stronger power foundations, how to have a passive investment strategy, to know more about investing in Reit’s and the notes and bolts of active investing.
Readers also follow Kyith to learn how to plan well for financial security and financial independence.
From 2004 to 2019, Kyith worked as an IT operational engineer. He is currently working as a senior solutions specialist in insurance. All opinions about investment canals belong to him and do not represent the views on providing.
You can view Kyith’s current portfolio herethat uses his Free Google Stock Portfolio Tracker.
His favorite investment broker is Interactive brokersAs a result of which he is able to invest in the effects of various stock markets around the world, at very low commission rates, without retention, near spot currency rates.
You can read more about Kyith here.
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