Define Your Investing Style

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"... take this quiz to identify your natural inclinations (both good and bad) so you can find the methods, philosophies, and strategies that best match the way your brain is wired."

1. You're at the store and on the shelf is an array of options for the product you need. Which are you most likely to toss into your shopping cart?
A. The brand you've purchased in the past, even though it lacks the bells and whistles of some of the others.
B. A pricier brand you've always wanted to try because it's on sale for 20% off today.
C. A brand new product that promises revolutionary results.
D. A reasonably priced version that has not been FDA-approved, but has gotten favorable reviews from its customers.


2. You log onto your brokerage account. Which scenario are you happiest to see?
A. The market's up a whopping 10%, but your stock gained just 1% during the run-up.
B. One of the companies you own missed hitting its earnings target and is down 30% as a result, giving you the opportunity to buy more shares at fire-sale prices.
C. Over the past six months a stock in your portfolio has traded anywhere from $10 to $80. It's at the low end of that range right now, but you think it has the potential to double or even quadruple over time.
D. One of your stocks is up 15%, but there's no obvious reason why, so you'll have to do more research to find out.


3. Which activity are you most likely to choose at the theme park?
A. A spin on the Merry-Go-Round with your kids.
B. The newly revamped 3-D laser Zombie show.
C. The Nitro at Six Flags.
D. Forget the rides and head to the "Tastes of the World" food court.


4. How much information do you need to comfortably make buy, sell, or hold decisions?
A. You like to get regular company updates that are widely followed and analyzed by Wall Street, the media, and individual investors.
B. You prefer to check in on the business -- or its customers -- first-hand either in person or via online forums.
C. You regularly consult SEC filings, trade journals, and industry forums and do all your own analysis.
D. You're content with fairly regular coverage of the sector in which the company operates, even if news about your particular company can be spotty.


5. One of your companies is in the headlines today. Which event would not cause you to lose sleep tonight?
A. The company says it may have to temporarily suspend paying its dividend.
B. The launch of the company's next product has been delayed for at least several months.
C. The Board of Directors is making noises about ousting the CEO in order to install an industry veteran.
D. The currency of the country in which your company operates has taken a haircut.


6. If this were an "I'm a Mac/I'm a PC" ad, which company would you be?
A. Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK-B)
B. Buffalo Wild Wings (Nasdaq: BWLD)
C. Google (Nasdaq: GOOG)
D. America Movil (NYSE: AMX)


7. The business trajectory that most excites you is...
A. A stable, mature company with some room to grow via cost-cutting efforts, strategic acquisitions, and/or partnerships.
B. A newcomer that has not yet made a name for itself (and may not for many years) and has no heady expectations priced into the stock.
C. An innovative -- and often volatile -- company that challenges the status quo and has the potential to dominate (or create) a business niche.
D. A company that is ideally positioned to capitalize on fast-growing economies overseas.


8. What kind of volatility are you willing to endure on the road to wealth?
A. I'm not looking for massive growth -- I'm willing to settle for a couple of years of so-so returns just so I don't lose a lot of money.
B. I'm willing to endure a few white-knuckle periods until my investment hits the bull's eye.
C. I'll hold on for dear life -- even while everyone else is bailing -- if I truly believe that the long-term payoff will be big.
D. I can stomach volatility that is beyond the company management's control (e.g. currency fluctuations, political messes) if it means being in the right place at the right time.

"What's your investing temperament? Let's see how you're wired."

"Mostly A's: ...you're most comfortable limiting your exposure to risk. Patience is your investing virtue. Like the great Warren Buffett, you have the temperament to wait for a quality company to go on sale."

"Mostly B's: ...you're willing to look for things where few others dare to tread"

"Mostly C's: ...you seek companies that challenge the status quo"

"Mostly D's: In the pursuit of investment opportunities, you're not afraid to tread into foreign territory"

"A combination of A's, B's, C's, and D's: You simply seek a variety of opportunities to make your money grow."

Finally, consider that the stock market's recent gyrations may be influencing your answers.

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