Bielard, Biehl and Kaiser five-way model

What is the Bielard, Biehl and Kaiser five-way model?

Fund managers Tom Bailard, Larry Biehl and Ron Kaiser have identified five types of investors, each type characterised by their investment preferences and actions. These types are Individualists, Adventurers, Celebrities, Guardians and Straight Arrows. Key to the different categories is their different attitude to seeking professional advice.

Where have you heard about the Bielard, Biehl and Kaiser five-way model?

As an investor, you may have discussed it with your financial adviser, if he or she is a follower of this method of categorisation. You may have read about it in guides for the investor or in the financial media.

What you need to know about the Bielard, Biehl and Kaiser five-way model.

The five categories are defined thus. Individualists have faith in their own investment abilities so do not approach a financial adviser. But they are also cautious. Adventurers are what may be called high rollers, in that they like big bets, tend not to diversify and are happy to put all their eggs in one basket. They, too, are unlikely to seek financial advice.

Celebrities tend to follow the crowd in investment terms but are aware of their lack of expertise so frequently consult advisers. Guardians are fearful of losing money, thus prefer rock-solid investments such as government bonds. They, too, are likely to seek professional investment advice. Straight arrows exhibit some of the characteristics of individualists and some of adventurers.