Click here for Part 1: Rodney’s Take on the Main Challenges Facing Investors
Rodney Hobson: My view is that no one handles your investments better than you do. You know what you want. Make your own investments. It's easy with ISAs, it's easy with online stock brokers. The first time you invest is terrifying, but as with everything else, you get used to it.
Holly Cook: So that's a great a tip. Is there any other sort of top tips you would have for investors?
Hobson: Yes. Back your own judgement. Do your research, certainly. That I suppose is an obvious one. Do your research, and if you've done that, back your own judgement. Don't get obsessed with your portfolio. Don't sit every night pouring over it. No, there are better things in life to do, and if you really do need to sit in front of the computer looking at your shares every five minutes, then clearly you don't have much faith in your own judgement.
Do read the papers and see what is going on, and you'll get information on companies, particularly where share prices are moving or things are happening, so you can keep yourself informed without being obsessed. If things do start to go wrong with one of your companies, be realistic. Do face up to the fact that you're not going to get it right all the time. See if you've got it wrong. If shares fall—you're holding the company—then consider this, did you get it wrong? If so, face the reality and get out. If on the other hand, you still back your judgement then it may be time to top up your holdings at the lower level, but don't just go in at the lower level because you think shares are cheaper, do consider: is the share price fall justified?
Cook: Well, thank you very much for your straight talking. It sounds like you've given some top tips for restoring confidence in investors.
Hobson: Keep investing.
Cook: Thanks, Rodney. For Morningstar, I'm Holly Cook. Thanks for watching.