CI contributor and AAII assistant financial analyst Hareesh answers 10 questions about his life with investing.

Recently I sat down with our very own Hareesh Jayanthi, an assistant financial analyst here at AAII and a frequent contributor to Computerized Investing. I wanted to get a better idea of my colleague’s life with investing, and what better way than to ask some questions to debut our new 10 Questions column in CI? 10 Questions will ideally open up a new form of discussion among members, and also show a more personable side of the computerized investing arena. My intention is to interview members, co-workers, authors, portfolio managers, options traders and the like. Through these concise interviews, I hope we can all discover more about investing via computers by learning what others know and like.

1. What is your favorite investment book?

“Investment Biker” by Jim Rogers (Random House Trade Paperbacks, reprint edition, 2003). It’s the story of a legendary investor traveling the world by motorcycle and discussing possible investment opportunities. Rogers also talks about international economies and where they’re headed. I have an economics background, love motorcycles and of course investing so… economics + motorcycles + investing = my heaven. The tone of the book was conversational and a really easy read for me.

2. What was your first investment?

It was a discount airline stock whose name escapes me. I made $450 in three days and felt like a millionaire. The downside of that profitable trade was that I had no interest in long-term investing for a long time after that. Once you make some cash really quickly, it’s hard to imagine holding a stock for five years and “waiting” for profits.

3. What was your worst investment?

General Motors (GM). My father bought a bunch of GM stock for the whole family in 2007 and assured us that nothing would go wrong because it was GM and the price was so cheap. I, of course, forgot that there are two kinds of cheap in the world: cheap relative to historical data while the business outlook is good or improving, and cheap because the stock deserves to be. Of course, GM went bankrupt in 2009. I will not buy a GM car until they pay me back.

4. What makes you angry?

People who quit. It’s not how many times you fall down that matters, but rather whether you get back up. Don’t complain. Shut up and keep going. I’ve tried to apply this outlook to my marathons, triathlons, and, even recently, mountain climbing (definitely a story for another time). It works for investing, too: Stick to the long-term plan and don’t let the occasional bump in the road lead you astray.

5. What would you say your investment “style” is?

I was a short-term trader (i.e., gunslinger) when I first started, but learning about transaction costs and tax consequences has really tempered that. I am still aggressive, but long-term oriented to minimize costs. I don’t mind taking a look at uncommon strategies that are rigorously tested. However, in my retirement portfolio, I take a long-term approach and always have.

6. If you had a million dollars right how would you spend it?

I would see the world on my motorcycle, buy a ticket to space on Richard Branson’s Virgin Galactic and invest the rest.

7. What kinds of investment software do you use? Do you have a favorite?

I used to use desktop software like TradeStation, but have moved to the Web as well for sophisticated websites like Macroaxis.com. I still make heavy use of Excel, though, to facilitate research. At AAII, we use XLQ to pull data into Excel, so I’ve learned a lot about Excel and facilitating my investing information through spreadsheets. I am excited to see what the rise of smartphones will mean for investors, although I can’t imagine relying solely on my iPhone for investment tracking.

8. How often do you check your portfolio?

Daily, but I just take a glance. Mobile technology can give you immediate access, which is great, but it also tempts you to take some action—i.e., trade on the go. I try to steer clear of day-to-day news and noise, but it’s really hard when trading is so simple these days.

9. Favorite financial website or blog?

My favorite blog is The Housing Bubble Blog because of their animated discussions on the economy, the housing market and the Federal Reserve. I really like more conversational websites and discussion boards. While you can learn a lot from watching the news and reading headlines, I get a good idea of how people feel about particular subjects by reading comments and conversations.

10. What’s your greatest life lesson?

The value of patience. There’s an expression I learned from keeping aquariums (yes, I kept aquariums), “Nothing good happens fast,” and I believe it applies to investing as well. You need patience to win the long game, which as an individual investor is the most likely way we can win. Many of us want to jump from start to finish, but I’ve learned over time that this isn’t really possible.

BONUS QUESTION

What question would you suggest for the next person we interview?

What movie, no matter how many times you’ve seen it, will you still watch if it’s on TV?