Type 5 Investor

Type Fives are on a lifelong mission to learn and make intellectual sense of their external worlds through internal thoughts. When contemplating investment opportunities, they dive deep into facts and figures, relishing the research process and gathering an escalating sense of competence. 

While a Type Five is often described as someone who curtails needs and dependencies, hence a minimalist, there is also a maximizing urge to hold onto anything that counts towards self-sufficiency, especially knowledge. A hoarding mentality impedes the willingness to share and exchange ideas with others, because doing so might diminish one’s information advantage. Type Fives may also hold back from investing any amount of money at all, preferring to hoard cash or equivalents. 

The basic desire for self-sufficiency and urge to hoard point to an innate need for safety by staying within imaginary boundaries that Type Fives place on themselves. Taken to extremes, Type 5 investors can become out of touch with reality because they are afraid of allowing anyone or anything to influence their thoughts. 

Because Type Fives do not wish to look or feel foolish, some of them may avoid making mistakes by stopping short of taking investing actions and sharing their thoughts with others. Without either, mistakes are avoided and there is no risk of being judged as incompetent. True competence in investing, however, can only be achieved through action with real money, not by writing memos or building portfolios in the air.

The tendency to isolate deprives one of human connections, which are essential to reality checks and testing of investing ideas. With a scarcity mindset, getting involved with others is a depletion of their energy reserves. In addition, forging relationships – even just professional collaborations – taps into deep fears of dependencies, because Type Fives tend to regard people as unpredictable and demanding. Accordingly, solitude is a less painful option.

To step out of their shells and away from fears, Type 5 investors may find resonance with the enthusiasm of Type Sevens and the courage of Type Eight challengers.