The Different Vintages of Investor Types

Sep 22, 2022 2:09:51 PM

Investing is a lot like winemaking. And investor types are a lot like the various vintages. Both require planning, patience, strategy, and deep knowledge based on experience.  

In both processes, the desired outcome isn't always guaranteed. Instead, a winemaker strives for consistency and gains from year to year, understanding that every vintage will be uniquely nuanced, based on weather, sunlight, rainfall, and other external factors.                        

Similarly, investors also know there will be external factors, or market storms, that they will face as they work to grow and preserve their wealth. So, they employ strategy, patience, and skill as the market inevitably moves up and down. Just as there are different vintages of wine, there are also distinct types of investors.  

Investment definition

Your Investor Type   

Figuring out your 'investor type' is an important place to start when looking for ways to navigate markets and avoid making irrational financial decisions. First, it is helpful to recognize whether you are an active or passive investor. Some subtypes also help to explain psychology. Here are a few descriptions to consider:   

  • BUSY - you are obsessed with the markets, following and trading frequently. You are a high-roller and don't sit out volatility. You are competitive.  
  • CASUAL - you let it ride, trust advisors, and prefer to play it safe. You are optimistic.  
  • CAUTIOUS - you are risk-averse and take time to make decisions. You have a shorter time horizon. You are careful.  
  • EMOTIONAL - you listen to your heart more than your head and look at the product more than performance. You are sentimental.  
  • INFORMED - You are an up-to-date researcher. You are confident but open to advice. You are well-rounded.
  • TECHNICAL - You are numbers-focused and tend to have tech-heavy investments. You are analytical.  

Which category describes you? You may identify with more than one description - a unique blend or varietal.  

No matter where you fall on the spectrum of investment types, you should investigate investment strategies that feel like a match. Explore VGA's Strategies HERE 

Growing Your Wealth

Growth Stages 

Grapes require time to develop into fine wine. They cycle through many different growth stages. Similarly, an investor's lifespan also varies, depending on timing and goals. At VGA (Vineyard Global Advisors), we strive to find strategies that match your risk tolerance, income level, and time frame. Here are four investment stages to compare:   

  1. Planning    
  2. Accumulation   
  3. Distribution   
  4. Legacy   

Knowing which growth stage, you fit into should help guide you to the investment strategy that will also match your investor personality. A great manager will work to balance the two.  

"The best wines require time, patience, and a deep understanding of the practice required to bring out the optimal characteristics of the grape. At VGA, we believe time, patience, and deep knowledge of financial markets are critical elements that factor into each investor's success."   

If you are uncertain about what steps to take to protect yourself during market volatility, find a manager who can define and manage that risk with you. Acting is the best antidote to uncertainty.  

Do you ever wonder why people make irrational decisions and why the most reasonable solution seems like the hardest thing to do? The psychology behind this explains that emotions are often the cause. Past experiences and mental filters can guide you in the wrong direction. Having a trusted partner by your side is a great way to keep you on the right path.  

A volatile market can push investors into irrational decisions. Some react like a deer in headlights, unable to move. Others become fearful of missing out and may react based on emotion or ego, making quick decisions without considering the consequences. Here are some key ways to stay on track with your goals:   

  • Patience - can counteract emotional choices.  
  • Ability to Block Out the Noise - stay focused on the goal.
  • Stick to the Plan - a manager can help.
  • Keep Calm - carry on when the sky is falling and remain relaxed when everyone else is freaking out.
  • Ask For Help - ask questions and get a team in place.  

Ultimately, creating an excellent wine or finding success with your investments requires patience and attention to detail. Vineyard Global Advisors offers a range of investment strategies designed to allow participation in the market's growth within a dynamic, risk-managed framework that seeks to protect against significant market declines. Our goal is to give our clients greater peace of mind by generating steadier returns over time. 

Learn more about Vineyard Global Advisors’ investment strategies.

View Our Strategies

Contact Us Today

Investment advisory services are provided through Integrated Advisors Network, LLC (“Integrated”) a registered investment advisor. Registration does not imply a certain level of skill or training. Vineyard Global Advisors, LLC is a practice group of Integrated.

The opinions expressed herein are those of Vineyard Global Advisors and are subject to change without notice. This material is not financial advice or an offer to sell any product. Forward-looking statements cannot be guaranteed. This document may contain certain information that constitutes “forward-looking statements” which can be identified by the use of forward-looking terminology such as “may,” “expect,” “will,” “hope,” “forecast,” “intend,” “target,” “believe,” and/or comparable terminology. No assurance, representation, or warranty is made by any person that any of Vineyard’s assumptions, expectations, objectives, and/or goals will be achieved. Nothing contained in this document may be relied upon as a guarantee, promise, assurance, or representation as to the future. Vineyard Global Advisors is an investment adviser registered with the U.S. Securities and Exchange Commission. Registration does not imply a certain level of skill or training. Investment advisory services offered through Integrated Advisors Network, LLC (“Integrated), a registered investment advisor. Vineyard Global Advisors is a DBA of Integrated.

Investors cannot invest directly in an index.

There is no guarantee that the investment objectives will be achieved. Moreover, past performance is not a guarantee or indicator of future results. Does not constitute advice or a recommendation or offer to sell or a solicitation to deal in any security or financial product. It is provided for information purposes only and on the understanding that the recipient has sufficient knowledge and experience to be able to understand and make their own evaluation of the proposals and services described herein, any risks associated therewith and any related legal, tax, accounting or other material considerations.

Integrated is registered with the Securities and Exchange Commission (SEC). Registration of an investment adviser does not imply any specific level of skill or training and does not constitute an endorsement of the firm by the Commission. Business is only transacted in states in which it is property registered or is excluded or exempted from registration. A copy of Integrated's and VGA's current written disclosure brochure filed with the SEC which discusses among other things, business practices, services and fees, is available through the SEC's website at: