Steve Romick: Understand Who You Are Before You Start Investing

Johnny HopkinsSteven RomickLeave a Comment

In his recent interview on the In Search Of Excellence Podcast, Steve Romick recommends investors understand who they are before they start investing. Here’s an excerpt from the interview:

Romick: I would start with appreciating who each person is. Some people… just not who they are, to really understand how to go and allocate their capital.

Those people shouldn’t invest in a mutual fund or in a partnership or they should do no direct investing themselves. They need to find an investment advisor who can allocate their capital for them and that advisor needs to educate them, and now that individual needs to understand who they are as people and their own psychology, and make sure that that advisor can connect with them on that basis.

Because some… we all are different. We all have different tolerance for risk and it’s not just a function of how much wealth somebody has.

I know very very wealthy people who have no tolerance for risk, and people who are very very wealthy who just want to keep betting more. And the same is true for people who aren’t as wealthy, they want to keep betting and then they… and then people who don’t have as much, who don’t want to bet at all.

It’s not about how much you have, it’s about what your predilections are, and I think to understand who you are as an investor first and foremost is what you have, where you have to begin, before you take the journey of investing your own capital.

Before you decide to invest it yourself. Before you decide if somebody else invest for you.

You can watch the entire discussion here:

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