Monday, June 4, 2007

my greatest investing fear

I've recently been thinking about what my greatest fear is with respect to: investing, my investing strategy thus far, as well as going forward. At 28 years of age could it be a coming major market downturn, faulty stock selection, or inappropriate allocation of assets? No, none of these scare me at all.

My greatest fear is looking back and realizing I didn't take enough risk!

I really like my current strategy. I am comfortable with it, I understand it, and I believe it will allow me to prosper long term if I exhibit discipline, patience, and common sense. However, given my age, tolerance for risk, and low level of need for capital, should I be making some bets that could potentially yield higher returns. Will I regret going with a 100% boring, conservative, dividend growth, large cap, fundamentally solid, smooth earner strategy? Will I have these regrets when I look back at my investing activity, when I turn 50 years old.

This is my greatest investing fear. What's yours?

7 comments:

mugsy said...

My biggest fear is inflation. I am young(ish) - 33 years old. Have managed to build up a significant amount of savings ( > 1.5 million) and am well on my way to being able to retire in 7-10 years, which is my target.

My biggest fear is inflation that will erode the value of savings I have already make it harder for me to continue saving as I have been.

FourPillars said...

My fear is lower than expected returns which will affect my retirement plans.

As for your fear - I'll quote Peter Lynch "You can't lose money on something you don't own" - he was talking about someone who didn't act on a 'hot tip' and missed out on a big capital gain and complained about losing that money.

In your case, if you end up with the desired amount of spending money at the end of the day then you have won the game. There will always be someone who won the investing lottery on a lucky pick but many more who just lost big time. Nothing wrong with just going to work everyday.

Mr. Cheap said...

My only real fear, which I know is irrational, is running out of money and eating dog food on the street. I'm an extreme saver, in an in-demand profession (computers), so if I end up on the street I'll have lots of company, but there it is...

Nurse B, 911 said...

If we ever see a big enough crash (20%+) that I won't have enough cash to buy everything I'd want

moneygardener (AKA investor99) said...

Thanks for all the great comments and scary, fears.

Financial Jungle said...

My greatest fear is going bankrupt and living on the streets like Chris Gardner in "The Pursuit of Happyness."

Thicken My Wallet said...

someone hacks into my computer and cleans out my accounts (maybe because I read a story about it on CNN recently).