Do you know what it takes to be a successful investor?
Can you name the three drivers of asset class performance?
Are you aware of the upsides and downsides of each investment that you hold?
Not having the answers to these questions could leave your portfolio exposed to major risk.
That’s why David Stein, today’s guest, wrote an appropriately titled book: Money For the Rest of Us. His book outlines 10 thought-provoking questions to ask before making any investment decision.
David, a two-time guest on the show, was the Chief Investment Strategist and Chief Portfolio Strategist at Fund Evaluation Group, a $70 billion investment firm. While there, he co-founded the firm’s $2.2 billion asset management division and developed its investment philosophy and process as the lead portfolio manager.
In this interview, David discusses the 10 questions outlined in his book:
What is it?
Is it investing, speculating, or gambling?
What’s the upside?
What’s the downside?
Who’s on the other side of the trade?
What’s the investment vehicle?
What does it take to be successful?
Who’s getting a cut?
How does this investment impact your portfolio?
Should you invest?
Whether you’re new to investing or consider yourself an advanced investor, David has an asset allocation approach that can save you from the expensive mistakes investors often make.
Here’s how to think through each of these 10 questions and improve your investment decision-making process.