Wealth Management Executive Joey Feste Shares 3 Fundamental Tips for New Investors

Joey Feste
Understanding Investing with Joey Feste
3 min readMar 20, 2020

There certainly is no shortage of investment advice available these days, ranging from wise and proven counsel to ineffective financial guidance. In fact, a Google search for the phrase “investment advice” generates roughly 1.6 billion hits, and this is probably an underestimate, given that search engine technology is still a work-in-progress.

Understandably, this immense amount of content is both daunting and intimidating for new investors. However, the good news is that regardless of how many articles, books, videos, courses and other resources exist and emerge, the essentials remain steadfast and reliable.

Joey Feste, a Senior Managing Partner with wealth management firm KM Capital Management, outlines three fundamental tips for new investors to help them stay the course, grow their wealth, and limit their stress from surging to dangerous levels.

Create a Comprehensive Plan of Action

Well before new investors allocate their first dollar towards stocks, bonds, real estate, or any other asset type, they need to develop a robust, realistic plan that aligns with their goals and risk tolerance. Joey Feste, who has more than thirty years of financial advisory experience, claims that neglecting to create a plan, or crafting a superficial or unrealistic plan, is like trying to fly a plane without a flight plan. The chances of reaching one’s destination is wishful thinking instead of a likely outcome.

Perform Extensive Research

Given the complexity of the financial landscape, it is imperative to have a sophisticated understanding of both your current and long-term goals. The growth of your portfolio will depend on various factors including the amount of capital you invest, net earnings, and the length of the investment. Additionally, there exists a wide range of accessible and credible sources that can explain the basics in clear, jargon-free terms.

According to Joey Feste, new investors do not have to spend years researching before they get started. However, they should be prepared to spend at least a few weeks, if not perhaps longer, reading books and articles, watching videos, and possibly even taking a course or two. The goal is to grasp core concepts and become familiar with various approaches.

Diversify Your Investments

New investors should embark on the right path by diversifying their holdings, so they are positioned to exploit opportunities and mitigate setbacks over the long term. Trying to time the market is a huge (albeit common) mistake and makes one susceptible to all kinds of self-destructive cognitive biases such as regret aversion, confirmation bias, incentive-caused bias, oversimplification, groupthink, and the list of psychological pitfalls goes on. Diversification helps avoid the temptation to emotionally react instead of objectively respond to ebbs and flows.

Joey Feste states that many new investors find that working with an experienced and reputable financial advisor provides them with the structure, stability, and most importantly the discipline they need. Otherwise, it is extremely difficult for them to avoid continuously re-balancing their portfolio based on what turns out to be faulty information. Sadly, many new investors who try to steer the ship entirely on their own end up crashing into the rocks — and to make things even worse, they cannot point the finger at anyone else for their steep and in some cases catastrophic losses.



Joey Feste
Understanding Investing with Joey Feste

Joey Feste, Senior Managing Partner of the wealth management firm KM Capital Management, with over thirty years of experience. Austin, Texas.