Are you a saver or a spender?
I am great believer in saving through a pension. I started investing in my own pension nearly 34 years ago and can see the benefits coming through now. Most of my spending is done for me by my children, who are very good at it. My daughter is particularly good at making sure that there is more spending than saving.
Do you shop around for better value?
I believe in using professional advisers that I trust for important things.
I value my time and experience has taught me that good professional advisors add real value and save you money. I think we sometimes confuse value and price.
Cheapest price is quite often poor value depending on the small print.
What has been your most extravagant purchase and how much did it cost?
I bought a racehorse on my own for €50,000 right in the middle of the Celtic tiger. The horse barely made it around the racecourse. It was extravagant, he ate a lot, got sick a lot and it was one of those things I will not be doing again.
What purchase have you made that you consider the best value for money?
I bought Bank of Ireland shares at nine cent at the same time as Wilbur Ross acquired 25 per cent of the company.
I sold them recently at 30 cent. I believed that the asset was undervalued and Wilbur Ross’s purchase supported that view.
What ways do you prefer to shop – online or local?
If I am buying financial services or holidays, I will use online research tools and then purchase through a professional adviser. I find some travel agents excellent in providing an overall cost-effective service for holidays. I use my own adviser here in IFG for financial services and purchase all my clothes in a great shop on Dawson Street. Everything else I buy online.
Do you haggle over prices?
Only in Istanbul. It is rude not to haggle and you get a much better result. It's part of the culture there and I really enjoyed it. Generally, I don't haggle over prices. Outside of that I am probably a salesman's perfect customer. I buy all the latest gadgets. I love Garmin toys and have one for golf, trekking and running. I still don't know to use them.
Has the recession changed your spending habits?
Overall income is down for most people so you do change your spending habits. I don't spend money any more on depreciating assets. I don't change my golf clubs when I hit a couple of bad shots, and I eat and drink less in nice restaurants. I save more and am more conscious about value.
Do you invest in shares?
Yes I do. I look for undervalued assets as a principle. I prefer exchange-traded funds (ETFs) to shares unless I see a compelling case for direct investment. I think mining and silver shares and indices are current undervalued assets that will perform well in the medium term. I also like well-managed property trusts/funds with no gearing when yields are high.
Cash or card?
I use my cards all the time and carry very little cash. I can monitor my spending against budget on my credit and laser cards. The statements help manage all the surprises.
What was the last thing you bought and was it good value for money?
I bought a Garmin watch for trekking. It is great value particularly when you get lost in the mountains. I had an interesting experience in the Wicklow mountains last Christmas without one.
Have you ever successfully saved up for a relatively big purchase?
Usual stuff – I saved for a deposit for my first house. I see my pension as a relatively big purchase.
Providing an income in retirement is very expensive, much more expensive than people think. I have been saving all my life for that.
Are you a gambler and if so have you ever had a big win?
I do a 10 cents "Goliath" most Saturdays. It costs €24 involving eight bets on rugby, football and horseracing. I have had a few nice wins but am still waiting on the maximum pay out.
I am also involved in an investment syndicate which meets every Christmas Eve to have a bet on the main sporting events for the following year. There are seven involved and it is very difficult to get any consensus. It is great fun – if only they would listen to me.
Have you ever lost money?
It depends on the definition of "lost" and over what time horizon. I am a great believer in "diversification" of investments and seeking opportunities in undervalued assets. Assets will move up and down particularly in the short term. I believe if you stick with those two principles you will not lose money in the medium to long term.
Is money important to you?
Not as important as health, family and friends. It is important to pay bills, but I don't get carried away by it all.
How much money do you have on you now?
€20.
In conversation with Tony
Clayton-Lea
