Bridger Pennington explains why managing other people's money is stressful and not. The stakes are real and losses happen, but he invests his own money alongside clients and stays deeply involved in research, which makes the work rewarding rather than just nerve-wracking.
Chapters
So is it stressful running a fund and being responsible for other people's money? So the short answer is yes, but also no at the same time. So yes, you're dealing with millions of dollars and big decisions, and yes, sometimes you make tons of money. Yes, sometimes you lose money as well on decisions. But at the same time, at least for me, where I say no is because number one, I actually invest into all of my funds, so I align my own money with my investors in my fund. And number two, I feel like the stress levels go down a lot because I am so involved and ingrained in what our fund is doing that I'm confident in the decisions that I'm making. It would be a lot more stressful if we were just throwing darts at a dartboard and just trying to gamble with people's money. Yeah, I'd be stressed out. But the fact that I have my own money aligned with my investors and we put so much time and effort and research into these investments, that stress level decreases a lot, and it's actually really fun and rewarding to get your investors good returns.