Value Investors Club Can Benefit all Categories of Investors
Value investing is something that a value investors club can help a beginning investor to understand better. A value investors club might help someone at first by figuring out that person’s investment risk profile. This will help to determine the kind of investments they are willing to make and then they can be helped by the value investors club to look for those kinds of investments.
The value investors club would likely use a type of investment questionnaire to estimate how the potential investor feels about the possibility of losing their money in an investment deal. Then, the results of that is put together to place the potential investors into particular types of risk profiles.
Here are some examples of investor categories:
Very Defensive Investors
This kind of investor’s risk profile will show their value investors club that they won’t tolerate any kind of substantial shakeup in the market. A defensive investor will likely agree to sacrifice almost all of the noteworthy upside potential of a potential investment in order to protect their money. They don’t want to lose any money when they make an investment.
The value investors club will see that the defensive kind of investor wants the club to help them to adjust their investment portfolio so that the resulting investment profits will help pay their future needs and they don’t want to be involved with anything that pay cause them to lose money. That means that the value investors club should help them to put most of their investments in cash deals. They need to avoid risky assets. However, even cash can have some risks, so being a defensive investor is very stressful for those types of people. The value investors club can possibly find a way to help them to learn how to manage the risks, yet still be able to take at least some minor risks in their investments.
Moderately Defensive Investors
This sort of investor is able to tolerate slightly more risk than the first one, as the value investor club will be able to determine with its questionnaire. However, they still won’t like turmoil or stress and are likely to not like market problems and will want a better return on their investment. The usual investor that fits this category is probably newly retired and gets paid from their investments. Or, they may tell their value investors club that they had a bad deal in the past and lost all their funds and now they are paranoid it will happen again.
Usually, however a good value investors club can show them ways to get some protection from huge market changes and so they will be willing to participate in the risks of the market more in making their investments. With proper investment classes and help from experienced investors that are usually in most value investors clubs, they can learn to moderate risk and make some worthwhile investments that can help build their profits and profile.
Moderate Kind of Investors
This kind of investor is kind of in the middle when it comes to their willingness to take risks and make investments. They are usually folk who wish to invest in some sort of long term investment so they can earn money for retirement or some other goals such as funding a college education. They will tell their value investors club that they want investments that have good return on their money investment and they are willing to take a few risks along the way to get it. Their portfolio is likely to have its ups and downs, which is pretty normal for investment deals.
The value investors club can show them how to develop a good balance and mix of investments such conservatively managed bonds, along with a few higher risk stocks. They know that they are likely to lose some of their funds, but they also understand they should also make money too.
Moderately Aggressive Investors
The moderately aggressive investor desires to do better than the current market index when all the markets are going up and it doesn’t worry them when their investments go down. They are willing to take on a lot of risk but also want to make a lot of money. In fact, their value investors club may have to help slow them down if they get so aggressive that they are hurting their own investments and can teach them when and when not to act. They usually are the folks that want to make a large amount of money and they want to do it in the shortest possible length of time.
The aggressive investor wants to significantly outdo the market rates and will expose themselves to much more risk than others. If they aren’t properly guided by their value investors club, they could lose most of their investments in a short period of time and not be able to make it back for several years. They usually want to invest in things like small cap or sector kinds of mutual funds and/or stocks. They want to make a lot of money, but likely already have sufficient income so they can still pay for all their daily expenses.
These types of investors realize that they may lose a lot of money, but they could also make a lot too. They think about money and making more of it constantly. Because of this, it is vital that they get the proper training in how to invest in the market by their value investors club.
The bottom line is that there are all kinds of investors that can benefit from joining a value investors club. No matter which category that you think you fit into, you can learn and get valuable insight and advice from a value investors club in your area.
So, if you want to do better in the market and in the investment world in general, then look for and join a value investors club in the city where you live or work.