How many investors does it take to change a lightbulb?<\/p>\n
The answer probably depends on who you ask.<\/p>\n
\u201cJust get it done as cheaply and efficiently as possible\u201d might say the value investor.<\/p>\n
\u201cForget lightbulbs. An artificially intelligent, interconnected, home system is the way of the future\u201d says the growth investor.<\/p>\n
\u201cForget changing it. There is nothing wrong with it\u201d argues the contrarian.<\/p>\n
The private credit investor offers \u201cwhatever is required, I can finance it at an appropriate interest rate\u201d.<\/p>\n
One of the most interesting things about investing is that there is no one single approach or archetype to success. In fact, in the above example, it is possible that all the above investors might be correct at the same time but for very different reasons.<\/p>\n
Despite financial markets largely operating on an adversarial process \u2013 for every buyer of an asset, it needs a willing seller \u2013 there is a lot of wiggle room in how investment decisions can be made.<\/p>\n
Style. Risk tolerance. Portfolio composition. The time an investor is expecting to wait for the returns. These are just some of the things that will go through an investor’s mind when deciding to press \u201cBuy\u201d or \u201cSell\u201d.<\/p>\n
An ensemble of investing experience<\/p>\n
This thought echoed through my mind as I attended the recent Livewire Live<\/a> event.<\/p>\n From private credit to artificial intelligence. Growth or value. Resources and technology. \u00a0Grizzled veterans sharing the same stage as emerging leaders. This celebration of the local investing scene had something for everyone.<\/p>\n It was a perfect example of the fact that there is not a single approach that must be followed to be successful in this game. If you put in the work and find the right opportunities, you have a chance.<\/p>\n And that is what makes investing such a great pastime.<\/p>\n Just like a walk through an art gallery, such as the Art Gallery of New South Wales where Livewire Live took place, you are free to gravitate towards what speaks to your personality and your view on the world, even if it might differ from others in the same venue.<\/p>\n There is also beauty in the conflict of ideas.<\/p>\n Again, Livewire Live was a great example.<\/p>\n One minute, Viktor Shvets, Head of Global Desk Strategy at Macquarie Capital, was offering up a roadmap for how investors might approach a potentially dystopian future world<\/a>. Next, some of Australia\u2019s leading fund managers were painting a far more optimistic picture of the future<\/a> and who they felt was likely to benefit from that.<\/p>\n The challenge of conviction<\/p>\n This is something I initially battled with when I started investing.<\/p>\n Nuance wasn\u2019t something I was quite ready to appreciate.<\/p>\n \u201cJust tell me what to do\u201d was something I would find myself thinking, if not saying.<\/p>\n However, over time, I learned that although I could borrow other people\u2019s ideas. I couldn\u2019t borrow their conviction.<\/p>\n The good news is that, whether you invest directly or prefer a fund manager do it for you, there are no shortage of diverse people, opinions and world views out there. <\/p>\n As such, it is easy to create your own personal network.<\/p>\n I\u2019ve personally created a list of investors and fund managers who share similarities with my approach to markets and those who tend to be on the opposite end of the spectrum. By understanding the opinions of both, I can better flesh out my thesis and challenge it for weaknesses.<\/p>\n