Common Mistakes to Avoid When Making Investments

business investment management
September 13th, 2023 0 Comments

A smartly executed individual or business investment management plan can provide a wealth of benefits for your long-term financial goals. Securing your financial future is essential. Investing serves as both a business succession planning guide and a safety net, offering increased income and long-term peace of mind.  

However, investing requires an expert hand to avoid the common pitfalls that can cost serious money and even derail the best laid financial plans. An expert in investment management services can help you avoid these mistakes while maximizing your portfolio in ways that align with your short-term and long-term goals. Therefore, a partner like Saddock Wealth is your best investment analysis and strategy resource. 

 Start your financial journey on the right foot by understanding and avoiding these common mistakes that can impact your portfolio and the success of your investments. Your initial strategy and decisions can subsequently be impacted by inevitable missteps and barriers, potentially hurting your bottom line.  

Top Investment Mistakes to Avoid 

Not Having an Initial Investment Plan 

 A clear and concise outline of your long-term goals is the key to any investment strategy. Furthermore, this includes the amount of money you have to invest now and, in the future, your timeline and ultimate objectives. This guideline is vital to any investment endeavor and will dictate the investment decisions you make in the future.  

Trying to Time the Market 

Even seasoned investors who watch global market changes on a daily or even hourly basis can make mistakes when it comes to timing. Therefore, market timing is not the backbone of ensuring your investments are successful. In fact, according to a renowned study on American pension fund returns, 94% of all portfolio returns were a result of smart asset allocation and not market timing or the correct selection of individual stocks.  

Lack of Diversification 

The best way to ensure a healthy and successful portfolio is to diversify, and this means not just focusing on individual stocks or bonds but having multiple avenues to long-term financial success. Many new investors focus on selecting stocks instead of the broader picture of asset allocation. Additionally, this can have financially detrimental results if there is a significant change in the market. 

Looking at History Instead of the Future 

Historical returns can occasionally be a good indication of a successful investment. However, investors should focus more on indicators of future performance rather than past returns. Use historical performance only as a signal of potential risks down the road instead of as a clear guide to an asset’s value. 

Acting Too Fast 

A lack of patience is one of the key reasons investments fail, as instead of constantly adjusting and tinkering with your portfolio, your eye should be on the long road ahead. Focusing on short-term benefits can make your investments vulnerable to market volatility and concerns. Therefore, a patient approach ensures more extensive benefits well into the future.  

Making Emotional Decisions 

A lack of patience and making emotional decisions can often go hand in hand. Therefore, it is easy to make a fast but potentially incorrect move if a certain investment is undergoing fluctuations. If a stock or the broader market falls, think instead of act – a rash decision can have hefty negative impacts on your overall portfolio.  

Not Asking for Help 

One of the biggest mistakes that new investors make is not asking for assistance from the start. Building an investment plan requires more than having a nest egg and opening a brokerage account. Moreover, creating the best strategy for your future goals requires time, patience, and a thoughtful approach.   

Navigating the Future with Informed Investment Strategies with Saddock Wealth  

The first step is to create a rough and internal plan of what you hope your investing venture will achieve. Do you want to retire early? How about securing the future of your business, family, and employees? Have extra income to start a new venture, or simply ensure peace of mind for your lifetime or the life of your company? 

The answers to these questions will lead to a detailed strategy for your portfolio and the investments you should make. That is why it takes an expert financial advisor to build these connections. 

At Saddock Wealth, we are standing by to help you craft your initial investment strategy. Our financial experts will be your partner in the years and decades ahead to ensure your investment goals come to fruition.  

Reach out to us today to start the conversation. Let’s work together to ensure that your investment strategy is smart, successful, and free of potential mistakes, no matter what the future holds.  

Contact us today.  


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