My Worst Investment Ever Podcast
Business:Investing
BIO: Kimberly Flynn, CFA, is a founder and Managing Director of XA Investments, responsible for all product and business development activities.
STORY: Kimberly put all her $2,000 savings into a single telecom-dedicated mutual fund at the peak of telecom valuations and saw it go down to 30 cents on the dollar.
LEARNING: Don’t put all your savings into a single idea. Be diversified, especially when dealing with active manager selection. Know yourself and your risk tolerance.
“You’ve got to feel comfortable making investment decisions, and if you’re not, get advice from somebody who can give you the right guidance.”Kimberly Flynn
Guest profile
Kimberly Flynn, CFA, is a founder and Managing Director of XA Investments, where she is responsible for all product and business development activities. XA Investments has a proprietary closed-end platform and a consulting practice to assist clients with developing US and UK-registered closed-end funds. Previously, Kim was Senior Vice President and Head of Product Development for Nuveen Investments’ Global Structured Products Group.
Kim received her MBA degree from Harvard University and her BBA in Finance and Business Economics, summa cum laude, from the University of Notre Dame in 1999. Kim earned the Chartered Financial Analyst (CFA) designation and is a member of the CFA Institute and CFA Society of Chicago.
Kim was recently selected to serve on the Notre Dame Wall Street leadership committee. She also serves as secretary of the Chicago Symphony Orchestra Women’s board executive committee and on the advisory board of Youth Guidance’s Becoming A Man program. She is an active member of the Harvard Club of New York City and the University Club of Chicago, where she serves on the Finance Committee.
Worst investment everKimberly made a $2,000 investment into an Invesco telecom-dedicated mutual fund at the peak of telecom valuations. This was in 1999, and very quickly rode it down to 30 cents on the dollar. Kimberly was assured that the telecom sector would be hot based on the research she was doing at the time at Morgan Stanley. This was Kimberly’s first investment after graduating college.
Lessons learnedTake 80% of the amount you plan to invest and put it into a diversified portfolio. Then, take 20% of it and buy a telecom or crypto fund because experimentation is sometimes helpful. If you lose 20% of your investment, you can recover.
Kimberly’s recommendationsIf you’re working in the financial space, Kimberly recommends checking out resources on her website, XA Investments, to learn more about alternatives. She also recommends reading The Economist or The Financial Times to gain a global perspective.
No.1 goal for the next 12 monthsKimberly’s number one goal for the next 12 months is to launch new products and take on new prospective consulting clients so she can grow her business.
Parting words“Stay positive. Even if you make a mistake, you can always start again and take on a new challenge or a new investment opportunity.”Kimberly Flynn
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Connect with Kimberly Flynn
David Kass – Don’t Invest in a Company Unless the CEO Owns a Large Stake
Christopher Panagiotu – Go With Your Gut, but Verify
ISMS 29: Larry Swedroe – The Shiny Apple is Poisonous and Information is Not Knowledge
ISMS 28: Stocks for the Long Run
Folarin Daniel Adeboye – Business and Friendship Can Never Mix
Dana Anspach – Loving a Product Is Different From Running a Business
ISMS 27: Larry Swedroe – Familiar Doesn’t Make It Safe and You’re Not Playing With the House’s Money
Manisha Thakor – Invest in Your Financial Health and Emotional Wealth
Richard Smith – Anything Valuable Is Hard
David Perry – Bet on the Person, Not the Idea
Tom Wall – If You Make Some Money, at Least Take Half off the Table
Rick Warner – Be Careful When Investing in Banks
Mohit Tater – You Don’t Know What You’re Getting Into Until You Are in It
Vorathep Srikuruwal – Walk That Property Before You Buy It
Phil Bak – Be Slow to Jump Onto Bandwagons
Jack Schwager – Never Stay in a Position That Violates What You Believe In
Sampark Sachdeva – Don’t Be Afraid to Take the Plunge
ISMS 26: Larry Swedroe – Are You Subject to the Endowment Effect or the Hot Streak Fallacy?
Vishal Bhardwaj – Do Not Let Emotions Run Your Business for You
Harjeet Khanduja – Work Smarter Not Harder
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