I really liked this concise view on investing mistakes to avoid via Ben Carlons at A Wealth of Common Sense:
The Bill Russell investment strategy is about avoiding the crippling mistakes that so many investors make on a consistent basis.
Here’s my list of the biggest mistakes to avoid:
- Making investment decisions based on your political views.
- Confusing your risk profile and time horizon with someone else’s.
- Consistently trying to time the market.
- Losing site of your long term financial goals.
- Paying high fees on investments.
- Having high trading activity.
- Letting fear and greed take over at the extremes in market sentiment.
- Having the majority of your investments tied up in one asset (company stock, your house, etc.).
- Basing your decisions on what you heard on CNBC or Fox Business News.
- Following every tick in the market and constantly checking the value of your portfolio.
- Making too many short term moves with long term capital.
- Basing your investments on the most recent performance.
- Not saving enough.
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.