BENJAMIN GRAHAM'S CLASSIFICATION OF TYPE OF INVESTORS
SELF REFLECTION QUESTION
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