Hero Investors LLC 

Investor Quiz


Investor Quiz

The Investor Quiz - See if you can answer "yes" to the following questions.

The Investor Quiz consists of questions an investor should answer if they want to find investing confidence and peace of mind. Under-educated investors may feel apprehension and confusion regarding their most important investment decisions. We will coach you through these important decisions. Remember, you must be 100% confident that you know the answer in order for it to quality as a "yes" answer.

1. Have you discovered your True Purpose for Money, that which is more important than money itself?

2. Are you invested in the Market? (This should be an easy one!)


3. Do you know how markets work?  (Do you understand the underlying dynamics of the market? If not, you are setting yourself of for stress and anxiety when the markets under-perform.)


4. Have you defined your investment philosophy?  (Do you believe that markets are efficient or do you believe that markets are inefficient? Does your investment strategy match your investment philosophy?)


5. Have you identified your personal risk tolerance? (At what negative return level do you become unable to "hang in there" when markets are down?)


6. Do you know how to measure diversification in your portfolio? (Does owning lots of stocks or mutual funds equal diversification? Will all of your holdings move down together during the next market downturn?)


7. Do you consistently and predictably achieve market returns? (The vast majority of investors don't.)


8. Have you measured the total amount of commissions and costs in your portfolio? (There are often fees and expenses that are not easily visible to the investor.)

9. Do you know where you fall on the Markowitz Efficient Frontier? (Risk Return trade off)


10. When it comes to building your investment portfolio, do you know exactly what you are doing and why?


11. Are you working with a financial coach versus a financial planner?


12. Do you have a customized lifelong game plan to guide all of your investing and spending decisions?


13. Do you have an Investment Policy Statement? (This is mandatory for qualified pensions plans. If it is good for them it may also be good for you.)


14. Have you devised a clear-cut method for measuring the success or failure of your portfolio?


15. Do you fully understand the implications and applications of diversification in your portfolio?


16. Do you have a system to measure portfolio volatility?


17. Are you aware of the costs associated with purchasing commission-based products?


18. Do you know the three warning signs that you may be speculating with your money versus prudently investing it?


19. Can you identify the cultural messages and personal mind-sets about money that destroy your investing peace of mind?


20. Are you ready to shift your personal experience of money and investing from a scarcity mode to an abundance mode- where you can live your life rather than obsess about your assets?

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