Investors' 10 most common mistakes

Jul 22, 2012 3 Replies

A really great "top 10" list by Barry Ritholtz:



Investors' 10 most common mistakes



formatting link
I seriously recommend reading the whole article - it's not long - but here's the summary:


  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

(okay, it's not clear from the wording that those are errors, but I'm not the grammar police, and they do point out things where one might make errors)



Share and enjoy!


I see the article refers to the brain as "wetware." I never saw this before. Is this colloquialism making the rounds?

Its been around for decades in the information technology field. They deal with software that runs on hardware, so...

snip

Is this colloquialism making the rounds?

"Wetware" has been around awhile. Just not used real often.

formatting link

Join the Discussion

Have something to add? Share your thoughts — no account required.

Didn't find your answer?

Ask the community — no account required