BENJAMIN GRAHAM'S CLASSIFICATION OF TYPE OF INVESTORS

SELF REFLECTION QUESTION

1. Do you have time to analyse companies?

2. How much can are you willing to lose your investments in stocks?

3. Have you set aside cash enough to support yourself and/or love ones (children/parents)?

4. Is your income stable now?

SUGGESTED PORTFOLIO ALLOCATION

TYPE OF INVESTOR

DEFENSIVE/PASSIVE INVESTOR
Backup Cash
25%		 Cash/Bonds/*ETFs
75%
  • Stable & low return (<8%)
  • Highly Diversified
  • Minimal time
  • Not interested & don't want to be affected by stock market
  • "I don't want to know & I don't care" attitude
ENTERPRISE/ACTIVE INVESTOR
Backup Cash
25%		 Cash/Bonds/*ETFs
75%
  • Not so stable & higher return (>10%)
  • Need to manage Portfolio
  • More time required
  • Regular monitoring of companies
  • "I want to know & I care" attitude

VIA TARGET PRICE CALCULATOR

FUNDAMENTAL DATA