Investment Metaphor #16: Pencil Holders

If you were asked to make a pencil holder for your desk, what kind of pencil holder would you make? What materials would you use? What construction method would you employ? How would you decorate the pencil holder?

For most tasks, there is more than one way to accomplish the same goal. With a pencil holder, the goal is to hold your pens and pencils so that they do not roll around on your desk. You could accomplish this same goal with a wooden pencil holder, a pencil holder made from old floppy disks, or from LEGO bricks.

I recently made my own pencil holder for my desk at work out of LEGO bricks, and I was intrigued by my boss's statement that my pencil holder matched my personality; he also indicated that he would have made a complete different style of pencil holder if he were asked to make one. Clearly there is a subjective and interpretive element to the artistic and problem-solving process.

As human beings, we are not content merely to accomplish a task; we almost always strive to put our own unique stamp on a project. Investing is no different. Two different portfolios can accomplish the same investment goals, for example, by having the same target asset allocation. However the individual investments within the two portfolios may vary greatly based on the particular interests and knowledge of each investor.

When you are assembling your investment portfolio, do not be afraid to select investments that bring a touch of your own individual interests and investing style into your portfolio. While you should always ensure that your investments are consistent with your financial goals and your investment philosophy, you can often achieve those goals with any number of different portfolios and investments.

Just like a homemade pencil holder, or a priceless work of art, an investment portfolio should reflect the personality of its creator. Just be sure not to let your own subjective judgments or interests interfere with the careful and objective evaluation of your investment choices to ensure that they are good investment options to help you meet your financial goals.