Decision Tools · A series

Ten common investor mistakes

Each piece takes one mistake, shows the evidence, and ends with a tool you can use on your own portfolio. Start with the self-check below and read the ones that sound like you.

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Which of these sounds like you?

1. Your target return came from a headline or a friend, not from your own goals. Mistake 1: Whose plan are you following?
2. You know how much risk you can stomach, but not how much your goals require. Mistake 2: Capacity, willingness and requirement: the three sides of risk
3. A large share of what you own is one company, often your employer. Mistake 3: Too concentrated, or too diversified?
4. You bought something mainly because it had done well recently. Mistake 4: Why popularity makes value harder to judge
5. You have moved to cash to wait for a better moment. Mistake 5: The best days sit next to the worst days
6. You don’t know what you pay in fees each year, or you kept a holding mainly to avoid a tax bill. Mistake 6: What you keep, not what you earn
7. You know last quarter’s return, but not whether you are on track. Mistake 7: Do you know your real return?
8. Your last full review was more than a year ago. Mistake 8: Plans fail quietly
9. You chose an adviser without checking their record. Mistake 9: Five checks before you hand anyone your money
10. You spend more time on returns than on how much you save. Mistake 10: Your savings rate: the lever you control

All ten pieces are live. Each one ends with a tool you can fill in for your own situation.

The ten mistakes are adapted from CFA Institute, Tips for Avoiding the Top 20 Common Investment Mistakes (2016), regrouped into ten.