Type 8 Investor
Type Eights (Challengers) crave power, and money is power to them. These alphas will raise the capital they need to become apex predators.
Core Motivation: Control
When it comes to money – whether it is in the form of saving, spending, investing, or donating – Type Eights want to be in charge. They may or may not be qualified to make certain choices, but that is beside the point. So long as they are boss, other conditions can be rendered secondary.
Primary Focus: Dare
With intense energy, Type 8 investors love big ideas and making large investments. Taking concentrated risks is more aligned with their innate qualities of bravado and self-belief. In some cases where they have meaningful stakes and can even exercise control over management teams, feelings of importance and centrality are reinforced. In contrast, diversification may connote feebleness and indecisiveness, traits that Type Eights detest and avoid
Key Avoidance: Mistakes
Given how intent Type 8 investors are on making and living powerful decisions, they are likely to avoid situations that stir up vulnerabilities. Nothing evokes the soft underbellies of emotions like confronting one’s own mistakes. For Type Eights who lack self-restraint and self-awareness, anger can be triggered when realizing missteps on their financial journeys. To protect their egos and avoid feeling responsible, they may look for scapegoats.
Trigger: Losing Control
With so much unknown, investing is a risky proposition and black swans can happen. Unexpected outcomes on the downside can take a toll on anyone and for Type 8 investors, it is an assault on their need for control over the external environment.
Blind Spot: No Grey Zone
When decisions are made based on instincts, it is fast and almost reflexive. Intuition plays a leading role here, and Type Eight investors tend to see things in black and white: genius CEOs and weak sauce; Amazon-like growth potential and the next GoPro; technological breakthrough and vaporware. A nuanced view is not the usual case for Type 8 investors. Since rationale counts for less in forming their opinions, it is hard for Type 8 investors to see alternative perspectives as well. Their confidence – justified or not – hinders them from questioning their own theses.