Top 10 Mistakes #2
The #2 item on my list of the ten most common mistakes investors make is discounting the importance of compound interest. Albert Einstein described compound interest as the greatest mathematical discovery of all time.
Top 10 Mistakes #3
Number three on my list of the top 10 mistakes that investors make is performance chasing. Here's the easiest way to make a million dollars in mutual funds.
Top 10 Mistakes #4
Mistake #4 on my list of the top 10 mistakes investors make is ignoring cost. Cost is a vital determinant of investment performance.
Top 10 Mistakes #5
Entry #5 on my list of the 10 biggest mistakes that investors make is focusing on potential return before risk. I have been in the investment business for over four decades and I can tell you that the most successful investors are those who evaluate risk ahead of return.
Only One Way to Go
The investment environment looks (a) great or (b) grim? Here is my answer.
Empty Storefronts
Anecdotal evidence offers serious reason for concern about the economy! I just returned from a 2,000-mile Harley trip from Newport, RI, to Blowing Rock, NC, and back. There’s no doubt about it: the economy is in trouble.
Top 10 Mistakes #6
Entry #6 on my list of the 10 biggest mistakes investors make is failing to focus on the Fed’s federal funds rate beacon. Today the fed funds rate is basically zero. That means rates have only one way to go-up!
Top 10 Mistakes #7
How does a triad of a 20% prime rate, $200-per-barrel oil and $2,000-per-ounce gold sound to you? Are these numbers possible, or even probable? Oh yeah!
Top 10 Mistakes #8
More money has probably been lost by overreaching for yield than by any other misguided strategy. Today, investors are really spooked.
Top 10 Mistakes #9
Most investors fail to make dividends their #1 priority. When it comes to stocks, if you are retired or saving for retirement within the next decade or so, dividends and dividend growth must dominate your thought process.