ASK AN EXPERT: What makes a great investor?

For expats in Czechia, the importance of making your money work for you has never been clearer. Price increases in everything from housing to everyday goods have underlined a brutal truth: unless you’re growing your money through investment, it is losing its value.

Investing well is more easily said than done, so Expats.cz asked Jan Stránský, Wealth Manager at Wood & Co., about the attributes that all aspiring investors should cultivate.

Have an objective in mind when investing. Ask yourself the following three key questions: 

It’s normal not to have a definite answer to each of these questions. But the sooner you establish your objectives, the sooner you can put your money to work in a way that is most advantageous to you.

Cooler heads always prevail. Financial markets will always have their ups and downs. Should the market experience a dip over a short or longer period of time, remind yourself why you chose your specific investment and have confidence in your decision-making. These moments can provide unique investment opportunities. Should you choose to react, do so based on numbers and logic, not on emotion.

Personal finances and investing are topics which many people keep close to their chests. But being able to share your investing successes (and struggles) is important. For Stránský, establishing personal relationships with clients means being able to manage their portfolios as not only a professional but as a friend. For those investing alone, it can’t hurt to start a conversation around the dinner table with the people closest to you. The topic of money doesn’t have to be taboo.

Do your homework. The money you’re thinking of investing is hard-earned, and you don’t want to throw it into an investment that doesn’t fit your needs or expectations. If you don’t have the time or find the topic to be too daunting, working with professionals allows plenty of opportunities to gain expert feedback and advice.

The longer you are willing to keep your money invested and allow it to compound over time, the greater the probability of success. While making significant gains over a short period of time is possible, this strategy is risky and shouldn’t be your expectation when starting to invest.