Twentysomething Dinah has an enthusiastic interest in investing:
‘I began [investing] because I loved it and found it enjoyable. But now I’m investing to get on the property ladder, so that’s my motivation. As much as I can, I want to buy a property in London and my timeframe is approximately 10 years – or shorter, depending on where house prices go.’

Having started at an intern at a private bank and wealth manager, she is now on its asset management programme and blogs about finance and investing.

She started her investment journey by putting money into two unlisted companies through equity crowdfunding platform Crowdcube.

‘I had come across a British watchmaking brand, Warloe Watch. I met with the founders and realised I was more than happy investing a portion of my savings in that company. At the same time, a fintech app called Penfold which specialises in trying to make pensions accessible for everyone was fundraising. I invested in that too and boom, there went my savings,’ she says.

DON’T BE AFRAID OF THE M-WORD

Dinah’s primary inspiration for investing stemmed from her dad: ‘Growing up, investing filled our dinner conversations. I know I am super lucky since this isn’t a very British thing at all. We are all a little shy of the M-word [money].’

Dinah is keen to inspire others to take their first steps into investing, even on a basic level: ‘I hope anyone reading this will take that first step and start talking about money since it is all around us. How can we be expected to manage it if we cannot even talk about it?’

She also reads a range of the financial press including Bloomberg, The Wall Street Journal, ‘for opinions on the other side of the pond’ and The Times.

PREFERENCE FOR INVESTMENT TRUSTS

Dinah mostly invests in investment trusts rather than specific stocks. ‘I prefer these over funds since they can take on gearing to boost returns and their structure makes them far superior to their open-ended counterparts,’ she says.

Holding specific investment trusts also helps her with the diversification element to her portfolio as her chosen trusts are spread over different geographies.

She also holds a little of her money in some stocks for ‘fun’. ‘It is a chance to do my own research [by investing in a handful of stocks] and test out all the theory from behavioural biases.

‘A few months ago, I was lucky enough to invest in Palantir Technologies (PLTR:NYSE) and I’ve doubled my money. Sadly, there was only £100 in it and not more,’ adds Dinah.

ESTABLISH YOUR INVESTMENT GOALS

Dinah strongly believes it is important to have investment goals to be a ‘motivated’ investor. These goals also dictate your investment horizon and risk appetite. Dinah says she has a ‘high-risk tolerance’ and ‘a long-time horizon’ when it comes to her portfolio.

‘I hold a chunk in private companies – think of a risk scale 0-10, this is a 10. I know 99% of start-ups fail but this is money I am prepared to lose. In this basket I hold a few different companies ranging from fintech to agritech to watchmaking.

‘When it comes to the stock market, I own several investment trusts. A few of my favourites are Montanaro European Smaller Companies Trust (MTE), Scottish Mortgage Investment Trust (SMT), JPMorgan Global Growth & Income (JGGI) – this is a trust that is globally diversified and gives you some income too.

‘I also hold some bitcoin and cash in my portfolio that I use for investment opportunities. You know what they say, the best bargains come along when you have zero cash.’

INVESTING FOR THE FUTURE

‘There is never a perfect time to invest and reading the media, you will find no shortage of gloomy press from inflation to interest rates,’ says Dinah. She says an investor’s job is to ‘filter out the noise and face the uncertainty’.

‘If there was no uncertainty there would be no risk. It is during the short run where all the nasty stuff occurs. Be brave and your future self will thank you.’

DISCLAIMER: Please note, we do not provide financial advice in case study articles, and we are unable to comment on the suitability of the subject’s investments. Individuals who are unsure about the suitability of investments should consult a suitably qualified financial adviser. Past performance is not a guide to future performance and some investments need to be held for the long term. Tax treatment depends on your individual circumstances and rules may change. ISA and pension rules apply.

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