The Eight Biggest Mistakes Investors Make
Successful investing requires more than just selecting the right stocks or bonds. It also requires avoiding big mistakes that can seriously hurt your long-term portfolio growth potential. Fisher Investments created The Eight Biggest Mistakes Investors Make™ to help investors identify and avoid costly mistakes. Understanding this program can greatly improve your ability to reach your investing goals.
Below is an overview of the The Eight Biggest Mistakes Investors Make™ program.
- Mistake #1: Not Having Clear Investment Objectives or an Appropriate Time Horizon
People often invest without clear investment objectives or an appropriate time horizon, and focus instead on short-term returns and price swings.
- Mistake #2: Underestimating the Time Horizon for Your Assets
Investors often underestimate how long their portfolio will need to provide for them. Given rapid advances in health care and nutrition, people are simply living longer today than decades ago, which means their money needs to last longer.
- Mistake #3: Ignoring the Impact of Inflation on Your Portfolio
Investors all too often focus on the dollar value of their portfolios without considering their purchasing power. Over time, a portfolio’s purchasing power can diminish due to inflation.
- Mistake #4: Turning Away From a Long-Term Investing Strategy After Suffering Losses
After a correction or bear market, some investors may be tempted to abandon stocks once they “get back to even.” Such emotional decisions can be harmful because they remove the focus from achieving your investing goals.
- Mistake #5: Improperly Judging Risk
Many investors improperly judge risk. Generally, the longer the time horizon of your investments, the more risk that may be appropriate, depending on your cash flow needs and return objectives.
- Mistake #6: Avoiding Foreign Securities
Most investors know it’s smart to diversify, yet most American investors aren’t nearly as diversified as they think. A portfolio with only US stocks misses out on an important factor—the rest of the global stock market.
- Mistake #7: Making Investments Based Only on Widely Known Information
Many investors regularly read various newspapers, magazines, and newsletters. Unfortunately, countless hours spent researching may not help you beat the market. Why? Because capital markets efficiently price in all widely-known information.
Mistake #8: Forgetting the Importance of Supply and Demand
Pundits, economists, analysts and journalists all have theories on what factors will move stocks. But often the most fundamental factors determining stock prices go unnoticed: supply and demand.
We Believe We Can Help You Avoid The Eight Biggest Mistakes Investors Make™ and Build a More Secure Financial Future
Avoiding these mistakes takes discipline and time. Even the most savvy investors find it difficult to avoid all investing pitfalls. Many investors simply don’t have time to process the vast amount of information available today and apply it to their individual, sometimes complex, investment needs.
Fisher Investments has been helping investors avoid these 8 mistakes for over 30 years. We take time to educate you regarding our investment decisions through proactive contact from a dedicated professionals and ongoing education.
To get the benefit of Fisher Investments’ expertise or to learn more about how we can help you avoid The Eight Biggest Mistakes Investors Make™, call us at (888) 823-9566.