Event Summary: Rabobank Workshop – Saving or Investing?

Should you invest? If you are able not to become emotionally attached to your investments, taking them on as part of possibly your pension could be a wise choice. Is there a chance you would become emotionally attached, better keep all your eggs in one basket through saving.

On October 27th Ariënne Kooter, the Managing Director of Rabobank Leiden, introduced to us Meinhard Leuhery and Brian Scharrenberg of Robeco, who very passionately told us all the ins and outs of investing. Meinhard started the workshop with giving us a few general reasons why you should invest. Inflation was the first reason he named. The price of new products or services do not keep on descending, after some time they ascend. They no longer are innovative. As a result hereof it is increasingly possible to buy more capacity for the same amount of money, or even a lesser amount. Another reason Meinhard gave us is the possible extra income, in addition to your pension, resulting from successful investments. The quality of life is increasing, which means that the current national pension measures are not sufficient enough anymore. As a third reason, he named capital for the next generation. Education, as well as health insurance and medicines, becomes more and more expensive. As a last reason, Meinhard mentioned ‘just for fun’.

Can you be objective with regards to your investments or will you let yourself be led by context? Brian introduced us to the range of emotions that play a role when undertaking the process of investment. You start off with greediness, you want more than your savings account can offer you. The first investment will make you proud, and euphoric. Doubt will be the next emotion, doubt about your investment, did you make the right choice. The share price will start to ascend, you disbelieve and deny. Fear will follow and will paralyze. The share price will further ascend, shear panic forces you to sell your investment. This journey full of emotions is a road taken by many private individuals.

Concluding the workshop, the gentlemen of Robeco advised us to take investment up as a hobby, to think long term, to be aware, to be careful, and when in doubt, seek counsel of professionals. A fun final fact, Ariënne Kooter added that women are better investors than men, since due to their testosterone, men experience the feeling of euphoria much quicker and get overconfident.