Morgan Housel, a US personal investing guru recently spoke at an Allan Gray investment summit and had these insightful comments:
The biggest risk investors face is themselves, because the mistakes they commonly make are based on their own behaviour and personal biases.
Investors’ attitudes towards risk are heavily influenced by their own life experiences – including the country and culture they grow up in.
You have no control over the stock market or the economy, but you can control your own behaviour.
To overcome your personal bias, speak to as many people as you can with whom you disagree.
One of the most common destructive investor behaviours is buying and selling at the wrong time.
Volatility is often seen as the biggest risk in investing. However, the biggest risk is the action that you take in response to that volatility.
A key mistake is not committing to the long term. Don’t judge the daily performance. Successful investors have the patience to stick it out.
At Investonline we believe it’s imperative to have faith in your investment strategy, which is accomplished by ensuring your goals are correctly matched to your investment risk. This will give you the peace of mind of staying invested for the long term, which will reap the best rewards.
To ensure you invested correctly contact an Investonline Financial Advisor.