Big Investment Mistakes and How to Avoid Them
Speculative stock and sector bets and too conservative portfolios top users' lists of investment mistakes.
Have you ever cringed when friends or family members have confided in you about speculative stock bets that have gone awry? Or watched in dismay as they followed the advice of brokers who didn't have their best interests at heart?
It might be a small consolation, but this is a common occurrence among many users in the Morningstar.com community. I recently asked participants in the Investment Basics forum of Morningstar's Discuss boards to share the most common mistakes they've seen friends and family members making, and the comments rolled in at a rapid clip. Several users also shared their own investing miscues and what they learned from them. To read the complete thread or chime in with your own experiences, click here.
When Safe Can Be Sorry
Several posters noted that they've frequently observed their loved ones (or themselves) falling into the pitfall of being too conservative or panicking during market weakness only to be left with the nagging question of when to get back in.
Christine Benz does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.
Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.
We’d like to share more about how we work and what drives our day-to-day business.
We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.
How we use your information depends on the product and service that you use and your relationship with us. We may use it to:
To learn more about how we handle and protect your data, visit our privacy center.
Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.
To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.
Read our editorial policy to learn more about our process.