Run into the fear with your investments

The magazine launched back September 1982 and the editor at the time, Chris Gilchrist, started the simple, plain English approach to investing, which he later took into a career as a very good independent financial adviser. Ironically he retired from being an adviser early in the year having had a career in financial services even longer than What Investment.

And with the end of What Investment magazine it is also the end of the What Investment daily newsletter and the website will no longer be updated on a regular basis.

If you are a subscriber to What Investment and you would like to see if you qualify for a refund on your outstanding subscription please email my colleague Lara Rosset on [email protected]

We would ask you to be patient as Lara literally has thousands of readers and subscribers to help. In the meantime please contact your bank or credit card provider and cancel your standing order or subscription immediately to ensure no future payments are made.

I have been fortunate to be editor for the last four years or so and have greatly enjoyed all the interaction with readers.

I say ‘fortunate’ but because as a journalist of nearly 40 years’ experience I can share some of what I have learnt over the years and hope it has provide help and ideas for our readers.

I am also fortunate because of the access to professional investors which being a journalist affords. Simple I can tap into their brains and share that knowledge to a wider group of people.

So what have I learned over the years? Largely that investing can be as complicated or enthralling as we would like to make it.

I am reminded of a quote attributed to the great South African golfer Gary Player:’ The more I practice the luckier I get.’

For me this is as appropriate to golf, a sport I don’t play, as it is for investing and the broader management of our financial affairs.

I learn things about stockmarkets every day and hope when I make a handful of investment decisions a couple of times a year that I invest in a better way. So, what’s a better way? Well it means I take the emotion out of things and I try and invest with patience, and I’m not looking to make a quick buck. I’m an investor not a trader, so I find it hard to imagine investing in crypto currencies and other speculative investments that have no intrinsic value.

And importantly when I make an investment I’m clear in my own mind what success looks like. If I invest £100 ‘success’ is that £100 grows in value over time. I can hope that it grows by more than the rate of inflation, but sometimes you have to accept that that is not possible. I know for example I’m never going to invest in something that is going to grow 10% in a year when inflation is 10%, but if it grows by 5-10% per annum over a ten year period I will be more than happy.

What I’ve also learned is that there is always an investment somewhere which will outperform something I will be invested in. I try not to get ‘investment jealousy.’

And finally I have learned to ‘embrace the fear’ or as it is sometimes described when challenging our own personal issues ‘run into the fears.’

Investment fear is investing in areas or assets when they are generally out of favour. For me that is most often emerging markets, and never more so than currently. If you want to ‘run into your investment fear’ I would suggest looking at allocating a little bit of money to emerging equity funds – either unit trusts or investment trusts – and emerging debt or bonds.

These should be small amounts of money, relative to the rest of your investments, and I think over a five year period as the world recovers from Covid and at some point there will be ‘solution’ to the Ukraine war, then emerging economies are likely to outperform the Western, developed nations.

I wish all readers and investors good luck with their investments. Investing can be hard, it can be scary but is also highly enjoyable and satisfying and is one of the few things that gets easier as we get older and more experienced.

Lawrence Gosling, editor-in-chief, What Investment

Business News