The Investor's Personality

As we have remarked before, all investors are not alike. Different individuals may show many differences in certain personal attributes. Here are two examples. Fred Firmrock is a careful, methodical, dependable sort of person. He would be classed as a "solid" citizen. Slow, soft-spoken, conservative, he will never make a snap decision and in money matters he is also quite conservative.

He wishes a fair rate of return upon his investment, but places complete protection of capital first; he is willing to sacrifice some of the former in order to obtain the latter. Since he insists upon the utmost in safety we may term him the defensive type of investor. High-grade bonds are for him, and with them he feels secure and content.

Dan Dynamotor is a different sort of person. He is outspoken, makes up his mind quickly, and once he has determined a course of action, he will follow it out to a conclusion with all the resources at his command and with strong determination. Some feel that he is too sure of himself, but all agree that there is never any question as to his opinion and his stand upon any issue. As a salesman he is eminently successful and has a keen interest in his work and an uncanny ability to judge people.

In the field of investment he wants a fair rate of return with reasonable protection of principal, because he realizes the growth possibilities of the nation and takes a long view of the future; he understands that there are temporary setbacks, but that the general trend of the national economy has been forward; he has a deep and sincere faith in the long-term advancement of the nation and this is reflected in his investment attitude.

Consequently, he has bought somewhat more of common stocks than prudence would indicate, although they are well chosen in order to represent some of the most progressive and dynamic industries of the day. He may be termed the aggressive investor who looks more to growth over the long term than for present returns. He does temper his outlook with a certain amount of caution, since he will not act in any situation without obtaining all the information he can; this attitude is to be commended and as a result he has had but few disastrous disappointments.