All Investors Have Their Own Investing Philosophies

[Jason Malabute]

In a broader sense, I believe there are two main kinds of Investing Philosophies – the Conservative approach and the More Aggressive approach. I count myself as one of the Conservative Investors.

I have talked to many investors who are more experienced than me. Some of them are conservative while some are aggressive investors. The thing about aggressive investors is that they tend to close a larger number of deals even during the selling season market. Thus, putting themselves in a more risky position during the downturn.

On the other hand, conservative investors decrease risk by closing on a lesser number of deals in the seller market because of their precautionary nature. However, this approach has its downsides too. In fact, both of these investing philosophies are double-ended swords!

If you are too conservative, you might never be able to close on a deal. If too aggressive, you’ll find yourself in trouble when the market correction happens. However, I do take tips and suggestions from both conservative and more aggressive investors.

This is the main reason that I always try to follow the moderate approach – which is the strategy of my mentor Sterling White, who became the owner of over 500 units at a very young age.

So, I believe it’s always good to play it conservatively as long as you don’t just sit back without doing any deals at all. Unlike many investors who are just sitting on the sideline and waiting for corrections, and also some who have manipulated their criteria and would buy anything; I try to remain in the middle and pursue deals that fit my criteria and 7% R.O.I.