Ep41: Joachim Klement – Diversification: The Best Insurance Against Any Investment Burst
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Guest profile
Joachim Klement is Head of Investment Research at Fidante Partners where he investigates long-term investment trends, alternative investments, and listed investment trusts. He was previously Head of Thematic Research at Credit Suisse, Chief Investment Officer at Wellershoff & Partners and Head of Equity Strategy at UBS Wealth Management. He holds Masters degrees in Mathematics and Economics as well as the CFA and CFP designations.
In today’s episode, Joachim shares how his first investments were once doing great but ended up losing tremendously. Learn the two important lessons he got from this experience and why you shouldn’t make the same mistakes. Get that one great actionable piece of advice from this expert that could make you a better investor. Hear this and more in another story of meaningful failure and momentous success.
“Keep investing. Don’t get frozen off just because you had some loses yet some bad mistakes in your past. That’s what we’re here to learn from all of us, and we get better every day.”
Joachim Klement
Topics Covered:
02:00 – Joachim talks about working from the bubble and tech industries in the late nineties and switching into finance in 2000
03:00 – Sharing the highlights and lowlights behind his investments in the tech and finance industries
05:50 – Two essential lessons he got from this experience
07:27 – Andrew gives his equally valuable takeaways in this story
08:52 – The meaning of diversification and why you should apply it in your investments
13:01 – Andrew shares the three words he likes to say all the time
15:49 – Advice from Joachim in avoiding the same mistakes he did
Main Takeaways:
Lesson 1: “The eternal wisdom of everybody who saved for retirement slash is investing.”– Joachim Klement
Lesson 2: “It’s kind of important to talk for a moment about your first investment because it’s a little bit like your first girlfriend, you know, you don’t really know what you’re doing, but you know the other people, and you think you know what you’re doing, but in fact you don’t know it all, but you know that everybody else is doing it.”– Andrew Stotz
Lesson 3: “Diversification means that you always have some stocks that do well. And it always means that also, unfortunately, that you have some stocks that you hate.”– Joachim Klement
Lesson 4: “Everybody’s busy. So, you end up spending so much time creating your wealth that you don’t have time to keep on top of the investments that you’re trying to grow your wealth.”– Andrew Stotz
Lesson 5: “The solution in that case for most people is probably to go with something highly diversified. Keep contributing to it over time and just let it grow. But the mistake that many people will make is they want to get into a fancy idea, but they don’t realize they just don’t have time to keep on top of that idea.”– Andrew Stotz
Lesson 6: “Preserve your wealth.”– Joachim Klement
Lesson 7: “If you want to create wealth, diversification is not the best way to do it. But if you want to stay rich or if you want to protect your wealth, then proper diversification is the way forward.”– Joachim Klement
Lesson 8: “Look at your own history, look at your own experiences and learn from these experiences.”– Joachim Klement
Lesson 9: “One thing that I’ve introduced in my life is basically, since that first experience, was to have an investment diary where I note down just kind of free quick bullet points for every investment decision I make, whether I buy something or what I sell something or even sometimes if I consider buying something and then don’t do it, I just note down what is the investment case, why should it work?.”– Joachim Klement
Connect with Joachim Klement:
Andrew’s books
- How to Start Building Your Wealth Investing in the Stock Market
- My Worst Investment Ever
- 9 Valuation Mistakes and How to Avoid Them
- Transform Your Business with Dr.Deming’s 14 Points
Andrew’s online programs
- Valuation Master Class
- Women Building Wealth
- The Build Your Wealth Membership Group
- Become a Great Presenter and Increase Your Influence
- Transform Your Business with Dr. Deming’s 14 Points
Connect with Andrew Stotz:
About the show & host, Andrew Stotz
Welcome to My Worst Investment Ever podcast hosted by Your Worst Podcast Host, Andrew Stotz, where you will hear stories of loss to keep you winning. In our community, we know that to win in investing you must take the risk, but to win big, you’ve got to reduce it.
Your Worst Podcast Host, Andrew Stotz, Ph.D., CFA, is also the CEO of A. Stotz Investment Research and A. Stotz Academy, which helps people create, grow, measure, and protect their wealth.