5 Common Investment Mistakes to Avoid

When it comes to investing, there are simple mistakes that almost everyone makes. Here are five examples - and how to avoid them 

Valerio Baselli 28 January, 2021 | 1:14AM

Man Holding Hand to Mouth

Warren Buffett once said: “Success in investing doesn’t correlate with IQ once you’re above the level of 25. Once you have ordinary intelligence, what you need is the temperament to control the urges that get other people into trouble in investing.”

Successful investing requires arguably something even rarer: the ability to identify and overcome one’s own psychological biases. And that doesn’t concern only big (and common) wrong moves, such as trying to time the market, chasing short-term returns, not diversifying enough, or taking too much risk. It also concerns smaller hang-ups that can take a toll on your portfolio.

Here you have five examples of “small” mistakes investors can easily fall into:

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Valerio Baselli

Valerio Baselli  Valerio Baselli is an Editor at Morningstar Italy.

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