Ask Colin

I have read many articles that refer to investment plans, but have yet to see an example of one. I don't have a investment plan, but I am not sure where to start. Can you help?

This is exactly why I wrote my book The Aggressive Investor - now called Building Wealth in the Stock Market. These three paragraphs from the introduction explain:

For many years, I have taught the important idea that investors need to develop their own investment plans. They need to do this because everyone comes to investing with different attitudes, beliefs and tolerance for risk. Unless the investment plan we adopt is consistent with our personality, the inevitable conflict will lead us to unconsciously sabotage the plan and we will fail. This is not to be underestimated. Indeed, the longer I work in this area, the more I respect this idea. So, for a long time, I was reluctant to teach my specific investment plan, because it is what is appropriate for me, but not necessarily for others.

Then people started to come to me and say that they accepted the idea of needing an investment plan. They also said that they accepted that they had to do this for themselves. However, they had a problem. When they took a blank sheet of paper to write their plan onto, they had no idea how to start. Nor did they know what needed to be in it, before they could consider it to be complete.

I could have chosen to teach a purely theoretical approach to the development of an investment plan. However, it seemed a better idea to use my own investment plan as a model. My investment plan is built around what risks need to be managed. It shows how I have gone about managing them. It follows that my investment plan should not be simply copied, but must be adapted as is necessary by each reader. You will have to manage the same risks, but you should feel free to vary the methods for doing so.

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