How to Build a Winter Wardrobe Like an Investor

With the ebb and flow of restrictions on various establishments across the country, it looks like we might all be spending more time in the great outdoors this winter. If you're like us, perhaps you're thinking of upgrading your cold-weather wardrobe but are having a hard time deciding which pieces are right for you. Our answer: Approach the matter using some of the principles that apply to investing. Here's what we mean:

1. Identify Goals

Different types of holdings tend to serve different needs — be they the regular payout of dividends or assets that align with the level of risk you're comfortable with, to name a few. As investors build their portfolios, goals are a north star, and they can help guide winter-wardrobe shoppers, too. The key question: "What kinds of jobs do these items need to perform?" If you live in the Northwest Territories, where winter temperatures plunge to -40 C, not freezing is job number one. On the other hand, if you live in a temperate but damp climate, outerwear must primarily keep you dry. And, if you happen to live in the parts of Canada with volatile winters that run the gamut from wet/cold/windy/icy/snowy/balmy on any given day, you'll need a wider range of items to do different jobs. Consider what jobs you need done and create a shopping list accordingly.

2. Find Your Fit

The next step is researching brands and prices to fit your budget, both overall and for each individual item on your shopping list. As you research, remember this key tenet of investing: some quality assets tend to hold or increase their value over the long term. Likewise, if you take care of your coats and boots with regular cleaning and proper storage, they can last over a decade or more. With that in mind, you can determine the right mix of essential items, like coats and boots, and accessories.

3. Consider Value

How much should you spend on quality outerwear? Parkas range from a few hundred to several thousand. But spending more doesn't necessarily get you what you need. One way to think of value is as what's valuable to you: Why invest in a parka that will protect you from temperatures in the South Pole if your outdoor activities extend no further than walking to the mailbox in the morning? (See point number one.)

You can also look at things from the point of view of value investors, who avoid overpaying for quality assets. Think of buying good winter clothing like investing in quality companies with growing dividends. Their market prices are generally higher than penny stocks but, unlike the latter, they tend to be established businesses and may be less likely to spring unpleasant surprises.

4. Maintain Focus

Beware the bewitching allure of a sale. Buying a discounted item that doesn't serve your needs is no bargain. Prudent investors often research and carefully track market prices. If they deem the cost of a particular asset too high, they'll wait until volatility brings the price in line with their target, then pounce. Signing up for newsletters or following your favourite retailers or brands on social media can alert you to price reductions.

5. Consider Diversification

Just as an investor may choose to add sizzle to his or her portfolio by cherry-picking among a niche sector or specific geography, you can add some zing to your attire with accessories. Wearing the same scarf, hat, gloves and sweater every day until April or May is a boon for some, but some might find it boring. Switching these up does dual duty: rotating garments extends their lifespan, and it can keep things interesting. Shop the sales, check out vintage finds, knit your own, trade with friends and consider another tenet of investing: Diversification!