Kemp Powers, 50-something, is black, a native of New York and loves jazz.
At first glance, you might believe that I'm talking about the main character of Soul, Joe Gardner, the new Disney feature film, which tells the story of a middle-aged black musician, born in a peripheral neighborhood of the Big Apple, who he lives for music, more precisely jazz.
Unfortunately, Joe Gardner never fulfilled his dream, in his nearly 40 years of profession, of becoming a professional musician. Even so, he became a music teacher at a high school.
The day Joe has the chance to play professionally in a band, at a real show, he dies. But the story does not end there, on the contrary. That's where it starts, because Joe doesn't accept death just on the day that he would have the biggest opportunity of his life.
If I go much further, I will tell the whole story of the film, but the fact is that Soul was voted the best animation of the year by the Critics Choice Association. And, interestingly, it was created in the same way that you can use it to build your investment portfolio.
When we see the blockbuster animations from Disney and Pixar, we almost never imagined - I didn't imagine myself - that these were mostly real stories. Of course, I don't mean fantasy; but the plot behind it is often inspired by stories from the personal lives of directors, co-directors and screenwriters, who are tasked with creating the story of a film.
Soul has much of the life of Kemp Powers, who is a co-writer and co-director of the film.
But what can the creation of a film have in common with building an investment portfolio?
First of all, unlike what I imagined, an animated film is created in hundreds, thousands of small parts.
The screenwriters write the story, pass the characters on to the art people, who develop them; and passes it to the animation staff, who sets up the scene; and that passes to the audio staff, who records the lines and sound effects and fits them correctly in the scene. And only then does the entire film crew watch that scene, each with a minute eye on its specialty, and then determine whether that scene is so good as to be part of a film.
Many, many scenes in the film are frowned upon and literally deleted or replaced halfway, in a process that takes several years to complete. And the same method can be used by you when assembling your wallet.
Well, before you include an asset in your portfolio, you need to analyze it in detail. Check your volatility, that is, what is your level of price fluctuation, determine if it is consistent with your level of risk tolerated as an investor or investor, then check what is the potential return of that asset.
Is everything in line with your medium and long-term goals? Great, include him in the wallet.
Also check liquidity. Ask yourself, "How soon can I redeem this money if I need it?"
Also take a look at the minimum investment amounts and assess whether you are going to concentrate too much of your equity on that same asset.
You must do this successively, while adding assets to your portfolio. You, like the Pixar screenwriters, will not assemble your entire portfolio at once: include asset by asset, or, as the screenwriters do, scene by scene, reevaluate your portfolio and make sure it remains aligned with your goals each new allocation change made.
After that, comes the ultimate action: the editing work of the film's general director.
When the film is finished, the whole team leaves for the cinema and watches the so-called “director’s cut” - the one that the management considers the closest to the ideal. The director has the mission of verifying if the film, in fact, can pass the real emotions to those who will be watching, thus verifying if each part of the immense and complex puzzle of years and years of production is consistent with the expected final result.
Just like the general manager of your portfolio, you must do this work a few times. Stop, analyze it and see if it reflects your real needs, goals and purposes.
Are you an investor or a risk-averse investor? So, why so much exposure to high-risk assets?
Does it aim to live on income? Where are the assets that generate constant income in your portfolio? Here, the sooner you understand how they work, the better for you.
Do you prefer to invest aggressively? Where are most of your investments in stocks and real estate funds?
Oh, and you know what?
No Pixar film is created based on previous inspirations - except for the sequels, of course.
Each film reflects and tells a unique story. For professionals in the area, each project is a totally new learning sequence, there is no “free appropriation” of an idea already used.
That is, each film is unique, with its particularities and experiences
On second thought, shouldn't that be the case with your investment portfolio?