Dragons’ Take on Tech’s Role in Investing
Finance Tips Technology has drastically changed many aspects of how we manage our money, including ways to save time and cut fees.
There’s no denying that technology has drastically changed the investment landscape. Michele Romanow and Bruce Croxon from CBC’s Dragons’ Den share their views about tech’s role in the world of investing.
Mediaplanet: How can technology be leveraged when it comes to investing online?
Bruce Croxon: We live in world of continuous data generation and capture. All the information that professionals have access to is increasingly available to the average investor. Going directly can save time, cost and can be a better experience for those who prefer less human interaction.
Michele Romanow: Agreed. Technology has totally changed investing online. Now it's so much easier and can be done with a fraction of the traditional fees through platforms.
Mediaplanet: Is trading through an online broker a good avenue for new investors, experienced investors, or both?
BC: It's a good avenue for anyone that knows what they want to execute on.
MR: Your best investments are the ones you know. I have a lot of experience in startups, and less in institutional investing, so I keep my startup portfolio -the high risk part - and buy index funds.
MP: How did you get involved in the tech industry?
MR: I started as an entrepreneur early - my first business was The Tea Room, a sustainable coffee shop on Queen's campus and the next business was a vertically integrated caviar fishery. It wasn't until I saw how ecommerce was growing did I start Buytopia in 2010.
MP: Do you prefer to do your own trading online or with the help of a financial advisor in a face to face setting?
MR: I think financial advisors are great for creating a strategy, especially around stage of life and tax planning. I think there are so many digital platforms that can help you execute the strategy from there.
MP: What are some the benefits to investing online?
MR: Investing online allows you to invest seamlessly with access to real time data to make fast decisions.
MP: Is it important for investors to know and understand how their funds are being invested?
BC: Important to some. Like many professions, if investments are handled by a subject matter expert that spends their waking minutes thinking about their craft, trust can be earned.
MP: What are some important lessons you’ve learned when it comes to investing and making your money work for you?
BC: Trust the experts is a lesson. Unless you are investing in ETFs, having the benefit of the advice of a subject matter expert has always benefited me (provided the cost of that advice is reasonable or in other words they provide more value than their charge).