Irrational decisions, going all-in or all-out, a home country bias… There comes a time when too much information is a bad thing, especially when it influences the way we invest. As the new financial year gets underway, we look at some of the most popular mistakes investors are making in today’s environment, and how they can be overcome.
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I'm getting better at #1, guilty of #2 and surprisingly I seem to have #3 under control. Would be good to hear what other investors are grappling with. I'd say having a strong sell discipline would be my biggest weakness...
#1 is tough - it's good to keep questioning your hypothesis but it's difficult to keep your conviction and hold tight when 'everyone' seems to have an opposite view.
Interesting points, thanks David. Not getting caught up in media and market noise is I think one of the biggest biases, and one we are all susceptible to daily. Addressing points 2 and 3 are more achievable with the right investment strategy.