The Two Types of Investors

By Charlie Bilello

08 Sep 2021


There are two types of investors: Pundits and Professionals…

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The Pundit thinks they know everything.

The Professional knows that learning is infinite.

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The Pundit makes subjective predictions.

The Professional makes objective assessments.

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The Pundit seeks self-promotion.

The Professional seeks self-improvement.

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The Pundit exudes hubris.

The Professional exudes humility.

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The Pundit is forever calling for the next crash or recession.

The Professional is forever focused on things they can control.

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The Pundit only searches for things that confirm their beliefs.

The Professional seeks all evidence, even if it runs contrary to their views.

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The Pundit sells fear and greed.

The Professional helps others control these emotions.

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The Pundit has a sense of entitlement.

The Professional has a sense of gratitude.

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The Pundit seeks to indoctrinate.

The Professional seeks to educate.

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The Pundit makes extreme forecasts to gain attention.

The Professional forecasts wide range of possible outcomes to gain respect.

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The Pundit thinks in terms of long or short, this security or that security.

The Professional thinks in terms of asset allocation and the entire portfolio.

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The Pundit believes in certainty, conviction, and precision.

The Professional believes in uncertainty, reservation, and probabilities.

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The Pundit reads breaking news and watches financial TV.

The Professional reads books and listens to podcasts.

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The Pundit sees everything as black or white.

The Professional understands there is often a gray area.

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The Pundit makes the simple sound complex.

The Professional makes the complex sound simple.

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The Pundit has a prophecy.

The Professional has a plan.

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The Pundit has an answer for every question.

The Professional is often saying “I don’t know.”

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The Pundit provides a reason for every wiggle in the market.

The Professional provides evidence of randomness and noise.

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The Pundit believes their success is solely a result of their exceptional talent.

The Professional understands their success is a result of hard work and luck.

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The Pundit lectures.

The Professional listens.

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The Pundit is thinking about the next day.

The Professional is planning for the next decade.

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Pundit or Professional? The choice is yours.


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Disclaimer: All information provided is for educational purposes only and does not constitute investment, legal or tax advice, or an offer to buy or sell any security. For our full disclosures, click here.

About the author

Charlie Bilello

Charlie is the founder and CEO of Compound Capital Advisors.

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