What is a characteristic of a methodical investor?

Disable ads (and more) with a membership for a one time $4.99 payment

Prepare for the CFA Level 3 Exam. Utilize flashcards and multiple-choice questions with hints and explanations to boost your readiness. Ace your test!

A methodical investor is characterized by a systematic and disciplined approach to making investment decisions. Such an investor relies on hard facts, quantitative data, and thorough analysis rather than emotions or gut feelings. This focus on objective information and a structured evaluation of potential investments helps in minimizing biases that could lead to poor decision-making.

In contrast, the other characteristics mentioned do not align with the traits of a methodical investor. Being highly emotional often leads to impulsive buying or selling, driven by feelings rather than data. Preferring aggressive strategies typically suggests a willingness to take on significant risk, which may not be part of the methodical investor's conservative nature. Lastly, while focusing on market trends is important for many investors, a methodical investor prioritizes data and analytics over trends, which can often be influenced by hype or sentiment rather than solid fundamentals.

Therefore, the emphasis on relying on hard facts is a defining aspect that distinguishes a methodical investor from others.