Investor Snapshot - Trish Houston, COO - Law Debenture

What was your first experience of investing?

My very first taste of investing was when I inherited a few Glaxo shares from my great grandmother when I was about 14. That was the first time we really talked about investing as a family, and I remember feeling this real sense of pride that I was a shareholder. My mum used to get the annual report and I’d flick through it thinking that I owned part of it.

But in terms of actively investing myself, it was with money I’d saved during a gap year before university. I accidentally put it into something called a guaranteed equity bond – which I absolutely didn’t understand, and almost certainly wouldn't pass suitability tests today - but here’s the thing – it was  locked away through the whole of university and actually served me incredibly well. I couldn’t spend it even if I’d wanted to, and when I came out the other side, it had done very well.

Has there been a person or resource you have found most helpful in your investment journey?

Growing up, we didn’t really talk about investing per se, but we absolutely talked about money and saving. My parents weren’t big splurgers, and there was always this undertone that you had to look after yourself and be ready for the future or any turbulent times. That foundation of understanding the importance of saving has stayed with me.

Have you had any investments that have performed extremely well or extremely poorly? If yes, what were they?

After that first equity bond matured, I reinvested it into a stocks and shares tracker inside an ISA. Then I moved to Australia and, frankly, forgot about it. When I came back about 10 years after I'd earned the money as an 18 year old, it was doing very well – which was particularly important because I’d foolishly done what lots of people do when they first start work and opted out of any pension contributions.

On the flip side, I’ve subsequently invested in a few single stocks that I’ve personally chosen, and they have, without fail, always failed. I’ve never managed to make any money when I’ve picked individual shares myself.

What has been the riskiest investment you have made, or considered?

Picking those individual stocks was definitely the riskiest approach I’ve taken, and it’s taught me an important lesson. By the time you read about some investment opportunity or stock recommendation in the newspaper, it’s probably too late – the analysts have already identified it and acted before they share it with you and me.

What would you tell your 20-something self about investing?

Don’t look at your investments every day and panic when stock markets pull back. You’ve got to understand that you’re doing it for the long term, not the short term.

And on single stocks: only invest if you really understand the business – and most of the time, you probably won’t. If you’ve just read about some company you’ve never heard of and someone says it’s a good investment opportunity, avoid it! But if there is a company you’re genuinely passionate about or really interested in, and you’ve got a little bit of disposable income that you can almost play with, then I’d actually recommend it – because it’s quite exciting to know you’re a shareholder in a company you care about. Do it because it interests you, not necessarily because you want to make money.

If you want to make money, rely on a proven investment professional who knows what they’re doing.

Thank you Trish!

This interview is for information only and it is not investment advice. It is for use in the United Kingdom only. Investments and/or investment services may not be suitable for all investors. If you are not sure which investments are right for you, please seek advice from an independent financial adviser. If you choose to invest in financial instruments, you should remember that capital is at risk and that the value of investments can go down as well as up. This means that you could get back less than you put in. Some investments are less readily realisable than others and it may therefore be difficult to deal in or obtain reliable information about their value.

Capital is at risk and past performance is not an indicator of future performance.