Stock Investing Strategies tailored to your Personality and Risk Profile
The following table helps you pick stock investing strategies that best suit your Personality Profile and propensity for Risk.
If you don't know your Personality Profile and/or your attitude to Risk, then
check this Investor Profiler Tool.
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Low Risk |
Medium Risk |
High Risk |
|
Cautious |
Avoid investing in the Stock Market |
Large Cap Value:
Dogs of the Dow,
Index Funds/ETFs (*) |
Large/Mid Cap
Value/GARP:
Magic Formula Investing (Large Cap) |
|
Emotional |
Avoid investing in the Stock Market |
Large Cap
Value/GARP:
Dogs of the Dow,
Cornerstone Value,
Magic Formula Investing (Large Cap) |
Large/Mid Cap
Value/GARP. Can add Momentum to the Mix:
Cornerstone Growth,
Reasonable Runaways,
Magic Formula Investing (Large/Mid Cap) |
|
Technical |
Large/Mid Cap
Value/GARP:
Magic Formula Investing (Large Cap) |
Large/Mid Cap
Value/GARP. Can add Momentum to the Mix:
Cornerstone Growth,
Reasonable Runaways,
Magic Formula Investing (Large/Mid Cap) |
Any Strategy:
Small Cap Growth,
CANSLIM,
MAGNET Investing,
Tiny Titans (**) |
|
Busy |
Large Cap
Value/GARP:
Dogs of the Dow,
Cornerstone Value,
Magic Formula Investing (Large Cap) |
Large/Mid Cap
Value/GARP. Can add Momentum to the Mix:
Cornerstone Growth,
Reasonable Runaways,
Magic Formula Investing (Large/Mid Cap) |
Any Strategy:
Small Cap Growth,
CANSLIM,
MAGNET Investing,
Tiny Titans (**) |
|
Casual |
Avoid investing in the Stock Market |
Large Cap
Value/GARP:
Dogs of the Dow,
Cornerstone Value,
Magic Formula Investing (Large Cap) |
Large/Mid Cap
Value/GARP. Can add Momentum to the Mix:
Cornerstone Growth,
Reasonable Runaways,
Magic Formula Investing (Large/Mid Cap) |
|
Informed |
Large Cap
Value/GARP:
Dogs of the Dow,
Cornerstone Value,
Magic Formula Investing (Large Cap) |
Large/Mid Cap
Value/GARP. Can add Momentum to the Mix:
Cornerstone Growth,
Reasonable Runaways,
Magic Formula Investing (Large/Mid Cap) |
Any Strategy:
Small Cap Growth,
CANSLIM,
MAGNET Investing,
Tiny Titans (**) |
For each investment personality type, if you have a Higher propensity for Risk, you
can invest as well in the strategies suggested in a lower Risk profile.
Example: if you're Casual with High Propensity for Risk, in addition to
strategies using Momentum such as Cornerstone Growth, you can also invest in
less volatile strategies such as the Dogs of the Dow.
(*) If you're in such classification, you may keep a larger portion of your
investment in Index Funds or ETFs and invest directly in shares with a limited portion of your portfolio.
(**) Tiny Titans is James O'Shaughnessy's
Reasonable Runaways with
micro caps (25M-250M).
Finally, the table in
Investment Strategy
will give you additional recommendations depending on
your portfolio size, experience, Tax status.
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