Investors 10 Most Common Mistakes

The Big Picture created a top ten list of the most common mistakes that investors tend to make. I really like the list so I put the highlights here. If you want to read the entire description and discussion, click over to the article and learn a bit.

My favorite "error" is number 3 'You and your behavior is your own worst enemy.' I see this frequently. People hear about a "cool stock" at a holiday party and buy it on Monday. Or they hear about a hot technology on some talk show and then try to invest in that rapidly growing field.

  1. High fees are a drag on returns
  2. Reaching for yield
  3. You (and your behavior) are your own worst enemy
  4. Mutual funds vs exchange-traded funds
  5. Asset allocation matters more than stock picking
  6. Passive vs. active management
  7. Not understanding the long cycle
  8. Cognitive errors
  9. Confusing past performance with future potential
  10. When paying fees, get what you pay for

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