Here’s the 2nd part of the Investing quizzes I took over the weekend.
Third Age’s Investing Personality Quiz asks you ten simple questions on how you approach investing. The quiz took about 5 minutes to complete, and the results caused me to think about my investing style.
What I learned from the quiz
1. I need to spend more time listening to company conference calls. They are a significant part of your investment process, and are essential to fully understanding the health of your company stock. If you don’t have an hour to spend listening to the conference calls, read the transcripts at SeekingAlpha.
2. I’m not fully diversified. Currently, I don’t hold any REITs in my investment portfolio, which is a mistake. Full diversification includes holding investments from all the capital markets: equities, real estate, commodities, etc. Naturally, investors are attracted to the highest gaining investments, usually small cap stocks, but we cannot neglect the importance of diversification. Investors can be aggressive and diversified at the same time.
Is your investment personality different from what you expected?
Re the Investing Personality quiz from Third Age – either you took a different quiz or I missed something. This is the quiz for USA Today readers – slightly above moronic – not quite educated. Anyone who relies on this deserves what6 they get.
I’ll admit that Third Age quizzes aren’t highly advanced, but they do teach you a thing or two about yourself.
I think simple questions make it easier for us to be honest. If you’re a complete investing novice, then it will show in your test results. But if Third Age copied this quiz from USA Today, that’s really pathetic.