February 6, 2010

Malkiel and Ellis on the 6 Biggest Investment Mistakes

1. Overconfidence

2. Following the herd

3. Timing the market - market averages 9.6% return over long periods of time but the average investors returns are over 2% lower because they follow the herd

4. Assume you can spot trends that don’t exist

5. Pay too much in fees - low cost funds perform better than high cost ones and with less turnover which is not tax efficient

6. Don’t trust stockbrokers - their goal is to make money for them first, you second. they make money by making you take action, any action