The Good Investor's MentalITy Quiz - Do You Have IT?

9 Questions | Total Attempts: 2124

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The Good Investor

The Good Investor’s Mentality Quiz has come from experiences gained through the last 15 years of investing and primarily reflects conversations and readings from great investors and thinkers.   This is a quiz about great investors, not great traders, which are two different animals.   The overarching attributes that seem to make a great investor are the ability to let logic dominate emotion, a focus on understanding knowable factors, a self-awareness of what is unknown or unknowable, and a constant mission to refine and improve their process.   Take the quiz and remember that great investing is a mindset, no a skill-set.   Unfortunately attitudes are harder to change than knowledge, but just like other great investors, you can put systems and discipline in place to help foster a culture


Questions and Answers
  • 1. 
    A blackjack player has 19, takes a hit and gets a 2 for 21.  Was the decision to take a hit a:
    • A. 

      Good decision

    • B. 

      Bad decision

  • 2. 
    Letting “winners run” should enhance portfolio returns:
    • A. 

      True

    • B. 

      False

  • 3. 
    You buy a house for $1 million that subsequently declines in value to $500,000.  Someone offers you $800,000 for the house.  Do you:
    • A. 

      Take the deal

    • B. 

      Pass

  • 4. 
    Instincts are efficient tools for portfolio management:
    • A. 

      True

    • B. 

      False

  • 5. 
    Your five best risk-reward ideas should be your five largest positions:
    • A. 

      True

    • B. 

      False

  • 6. 
    The best time to buy is when:
    • A. 

      Fear in the market is low

    • B. 

      Fear in the market is high

  • 7. 
    Economic forecasts are an easy way to improve an investment thesis:
    • A. 

      True

    • B. 

      False

  • 8. 
    Two stocks trading at $20 have the same potential upside to $40 and downside to $10.  You have greater confidence in the upside being achieved for Stock One.  Assuming all else equal you would:
    • A. 

      Have a greater exposure to Stock One

    • B. 

      Have equal exposure to both assets

  • 9. 
    Modern Portfolio Theory is the optimal method to manage a portfolio:
    • A. 

      True

    • B. 

      False

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