How to keep investing simple

The financial services industry wants you to believe investing is complicated, says Cris Sholto Heaton. But for those who know how, the reality is very different.

One of the biggest myths about investing is that it needs to be complicated.The existence of this myth isn't surprising, since it serves the financial services industry rather well: the more difficult something appears to be, the more willing people are to pay an expert to help them with it. Yet the reality is that a sensible investment strategy can be very simple and arguably should be whether you know a great deal about investing or almost nothing at all.

For a good example of this, take a recent article by Jonathan Eley in the FT. Eley has been the personal finance editor of the FT and the editor of Investors Chronicle, so he has plenty of experience in financial markets. Despite that, "the vast majority of my [individual savings account (Isa) money is invested in a single security", he writes. While that may seem "an amazing statement for somebody in my position", "it's entirely consistent with my views on investing generally".

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Cris Sholto Heaton

Cris Sholto Heaton is an investment analyst and writer who has been contributing to MoneyWeek since 2006 and was managing editor of the magazine between 2016 and 2018. He is especially interested in international investing, believing many investors still focus too much on their home markets and that it pays to take advantage of all the opportunities the world offers. He often writes about Asian equities, international income and global asset allocation.

Cris began his career in financial services consultancy at PwC and Lane Clark & Peacock, before an abrupt change of direction into oil, gas and energy at Petroleum Economist and Platts and subsequently into investment research and writing. In addition to his articles for MoneyWeek, he also works with a number of asset managers, consultancies and financial information providers.

He holds the Chartered Financial Analyst designation and the Investment Management Certificate, as well as degrees in finance and mathematics. He has also studied acting, film-making and photography, and strongly suspects that an awareness of what makes a compelling story is just as important for understanding markets as any amount of qualifications.