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FIFTEEN FAVORITE INVESTOR FALLACIES
“Beginners in investment are often subjected to proverbial wisdom on the subject by friends and do-it-yourself manuals. Much of it is very bad for them, because it is false or only partially true. If you are able to spot the flaws in many of these arguments before they influence your approach to investment, you may avoid serious losses.”
1. Investing is just gambling anyway, so why not take a few chances?
2. You've got to speculate to accumulate
3. Growth always wins in the end/Value always wins in the end
4. Blue chips are best/Smaller companies are best
5. Penny shares are the best value for money
6. It's such a great company, I can't go wrong
7. But just look at the dividends
8. I've got to be in technology/biotechnology/telecoms, etc
9. I missed that one, I'll catch the next one
10. Paper losses aren't real
11. I'll never go broke taking a profit
12. It can't possibly go any lower
13. It can't possibly go any higher
14. I can't sell because of the tax bill
15. This time it's different
Conclusion
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“Beginners in investment are often subjected to proverbial wisdom on the subject by friends and do-it-yourself manuals. Much of it is very bad for them, because it is false or only partially true. If you are able to spot the flaws in many of these arguments before they influence your approach to investment, you may avoid serious losses.”
1. Investing is just gambling anyway, so why not take a few chances?
2. You've got to speculate to accumulate
3. Growth always wins in the end/Value always wins in the end
4. Blue chips are best/Smaller companies are best
5. Penny shares are the best value for money
6. It's such a great company, I can't go wrong
7. But just look at the dividends
8. I've got to be in technology/biotechnology/telecoms, etc
9. I missed that one, I'll catch the next one
10. Paper losses aren't real
11. I'll never go broke taking a profit
12. It can't possibly go any lower
13. It can't possibly go any higher
14. I can't sell because of the tax bill
15. This time it's different
Conclusion
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