Identify mistakes standing in the way of investment success
With so much at stake in investing and wealth management, investors cannot afford to keep repeating actions that could have serious negative consequences for their financial goals. The Five Mistakes Every Investor Makes and How to Avoid Them focuses on what investors do wrong so often so they can set themselves on the right path to success. In this comprehensive reference, readers learn to navigate the ever-changing variables and market dilemmas that often make investing a risky and daunting endeavor. Well-known and respected author Peter Mallouk shares useful investment techniques, discusses the importance of disciplined investment management, and pinpoints common, avoidable mistakes made by professional and everyday investors alike.
Designed to provide a workable, sensible framework for investors, The Five Mistakes Every Investor Makes and How to Avoid Them encourages investors to refrain from certain negative actions, such as fighting the market, misunderstanding performance, and letting one's biases and emotions get in the way of investing success.
- Details the major mistakes made by professional and everyday investors
- Highlights the strategies and mindset necessary for navigating ever-changing variables and market dilemmas
- Includes useful investment techniques and discusses the importance of discipline in investment management
A reliable resource for investors who want to make more informed choices, this book steers readers away from past investment errors and guides them in the right direction.
Autorentext
Peter Mallouk, award-winning financial advisor and philanthropist, describes common investment pitfalls and how to avoid them
Peter Mallouk is the president of Creative Planning and affiliated companies. His organizations provide comprehensive wealth management services, including investment management, financial planning, charitable planning, retirement plan consulting, and tax and estate planning services. He has been named the number one independent financial advisor in America on Barron's list (2014 and 2015), and Creative Planning has been named the number one independent wealth management firm in America by CNBC (2014 and 2015). He and his wife, Veronica, reside in Overland Park, Kansas, with their three children, Michael, JP, and Gabby.
Read more about Peter at CreativePlanning.com.
Rankings and/or recognition by unaffiliated rating services and/or publications should not be construed by a client or prospective client as a guarantee that he/she will experience a certain level of results if Company is engaged, or continues to be engaged, to provide investment advisory services, nor should it be construed as a current or past endorsement of Company by any of its clients. Rankings published by magazines, and others, generally base their selections exclusively on information prepared and/or submitted by the recognized adviser. Rankings are generally limited to participating advisers. The Company never pays a fee to be considered for any ranking or recognition, but may purchase plaques or reprints to publicize rankings. For information on individual rankings, including methodology, please visit: https://creativeplanning.com/category/top-ria-recognition/Klappentext
"Peter offers a lively description of the common mistakes investors make in their quest to beat the market. Avoiding these pitfalls and following an informed, disciplined approach can improve the odds of a positive investment outcome."
David G. Booth, Chairman and Co-Chief Executive Officer, Dimensional Fund Advisors
THE HANDS-ON GUIDE TO "ALMOST" MISTAKE-FREE INVESTING
Don't let market timing, active trading, acting on bad information, making behavioral mistakes, or hiring the wrong advisor lead you on a path that could permanently damage your financial wellbeing.
In The 5 Mistakes Every Investor Makes and How to Avoid Them wealth management expert Peter Mallouk reveals the most common and critical mistakes that investors make and provides a sensible framework for creating a winning investment portfolio in any market environment.
This book offers an accessible reference to financial health and shows how investors can navigate the shifting variables and market dilemmas that often make investing a challenging enterprise. The 5 Mistakes Every Investor Makes and How to Avoid Them is filled with easy-to-apply investment techniques and reveals the critical importance of disciplined investment management.
For any investor, no matter what their financial profile, this is a proven and reliable handbook for making the type of investment choices that can lead to a sound financial future.
Inhalt
Preface xi
Acknowledgments xiii
About the Author xv
Introduction The Market Wants to Be Your Friend xvii
Mistake #1 Market Timing 1
The Idiots 5
The Liars 5
Why Is It So Hard to Beat the Market? 7
The Masses Get It Wrong, Over and Over Again 8
The Media Get It Wrong, Over and Over Again 9
Economists Get It Wrong, Over and Over Again 9
Investment Managers Get It Wrong, Over and Over Again 14
Newsletters Get It Wrong, Over and Over Again 17
Your Buddy 18
Strategies That Don't Sound Like Market Timing but Are Market TimingOh, and They Don't Work, Either 19
What Smart Investors Have to Say on Market Timing 21
Knowing All This, Why Would Anyone Market Time? 21
Corrections 22
Bear Markets: An Overview 26
When Bear Markets Turn, They Make People on the Sidelines Look Silly 30
The Market Is VolatileGet Used to It 30
You Can't Wait for Consumers to Feel Good 31
Learning to Accept the Bear Markets 33
Miscalculating the Risk of Market Timing 34
But What If I Am Perfect? 35
Lump Sum Investing versus Dollar Cost Averaging 36
Learning to Fly 40
Avoiding Mistake #1Market Timing 42
Mistake #2 Active Trading 43
The History of Active Trading 44
Active Investment Managers Lose to Indexing 45
Fisher Investments 46
Legg Mason Value 46
Jim Cramer 48
Newsletters Lose to Indexing 50
Active Mutual Funds Lose to Indexing 50
Survivor Bias (a.k.a. Mutual Funds Perform Even Worse Than the Data Suggests) 52
What About the Winners, Huh? What About the Winners?! 53
Hedge Funds Lose to Indexing 56
EndowmentsMisperception of Performance 60
Venture Capital (Sounds Sexy but Usually a Dog) 62
The Taxman Commeth (a.k.a. Dear Goodness, It Gets Worse) 64
Portfolio Activity Hurts Performance 64
But Doesn't Active Management Work in a Down Market? 65
Why Indexes Win 65
S&P 500, Here I Come! 67
Avoiding Mistake #2Active Trading 69
Mistake #3 Misunderstanding Performance and Financial Information 71
Misunderstanding #1Judging Performance in a Vacuum 71
Misunderstanding #2Believing the Financial Media Exists to Help You Make Smart Decisions
(a.k.a. the Media Is Killing You) 73
Misunderstanding #3Believing the Market Cares about Today 77
Misunderstanding #4Believing an All-Time High Means the Market Is Due for a Pullback 80
Misunderstanding #5Believing Correlation Equals Causation 83
October Is the Worst Month to Invest …