My investments: Russell Smith, the managing director of Russell Smith Chartered Accountants

Rather than one singular best investment, my ongoing strategy for investing in business - rather than in property or shares - has proved to be the right choice for me. I believe that the returns are far superior and that, ultimately, this method provides me with more diverse investment options.

Personally, I choose not to invest in shares, but I am a huge fan of pensions and ISAs because they actively encourage you to set money asides and you benefit from them being tax free. It is also true that in order to capitalise fully on a pension you have to start early, which unfortunately too few of us seem to do, but I think it’s always a case of better late than never.

Are wise investors born or made?

No doubt, they are made. Investing is a skill like any other, you need to study and learn in order to succeed. The principle of putting money aside is very important, but knowing how best to invest that money is the key to successfully increasing your wealth.

What’s the worst investment you’ve ever made?

Touch wood, I’ve been lucky so far, probably because I have taken such a business centric approach with regards to the investments I have made. Each investment is considered and fully researched – bad investments often result from rushed decisions.

Which sectors are most likely to offer handsome returns for business investors?

I would suggest doing plenty of research and where possible, choosing sectors in which you already have some knowledge, understanding or interest. The sectors that I think are either already performing well, or that have the potential to increase are software, technology, renewables and education. Small business investment is another sector in which there is huge potential, but my advice would be to invest in the person and not in the business.