4 Portfolio Management Mistakes That Cost Investors Millions
- Emotional Decision Making: Letting fear and greed drive investment choices instead of sticking to a disciplined strategy based on research and analysis.
- Lack of Diversification: Concentrating too much capital in a single stock, sector, or geographic region, increasing portfolio vulnerability to market shocks.
- Ignoring Investment Fees: Overlooking management fees, transaction costs, and expense ratios that can significantly erode long-term returns over time.
- Market Timing Attempts: Trying to predict market movements and time entries and exits, which often results in buying high and selling low.
Successful investors focus on long-term wealth building through consistent application of proven investment principles rather than chasing short-term market trends.