Losing someone else’s money can feel much worse than losing your own. The psychological burden is immense and hard to shake off. There was a time when I toyed with the idea of being a money manager. The thought of handling other people’s investments was appealing, especially since I had a keen interest in the markets and a fairly successful short stint in personal investing during college. However, I quickly learned that the market’s volatility is not just about numbers but also about the emotional rollercoaster that comes with it.
During my junior year of college, I passionately recommended a graphics card company, TDFX, to my parents and friends. It seemed poised for success with a promising new product. Unfortunately, the company missed their quarterly earnings, delayed the product launch, and their stock plummeted by 30%. The financial loss was tough, but the emotional fallout was worse. I felt so guilty that I even offered to cover their losses, which they graciously declined. This experience taught me a hard lesson about the weight of financial advice and the responsibilities that come with it.
From that point on, I decided to keep quiet about my stock market wins and only share investment advice when explicitly asked—and even then, with strong disclaimers about the risks involved. I realized that if I were truly exceptional at picking stocks, I’d be a multimillionaire hedge fund manager, not just an ordinary guy trying to navigate through market unpredictabilities.
Investing in private growth companies through venture capital funds is another area I find intriguing. These companies tend to stay private longer, potentially leading to significant returns for early investors. I’m particularly enthusiastic about sectors like artificial intelligence, fintech, and real estate technology. Despite the high risks involved, the rewards can be life-changing if you pick the next big winner.
Always remember, investing is inherently risky, and no amount of success or confidence can make you infallible. It’s crucial to stay humble and remember your limits. Like finding a nut now and then doesn’t make a squirrel a genius, occasional investment wins don’t make me a stock market guru. I prefer to leave the frequent trading to the professionals and focus on balancing my portfolio a few times a year. After all, even seasoned investors often struggle to outperform the market consistently.
