Tags: deVere | millionaires | investment | diversify

deVere Survey: Millionaires' Top 5 Investment Mistakes

By    |   Wednesday, 04 June 2014 09:44 AM

Millionaires make investment errors just like the rest of us, and a survey conducted by deVere Group, a financial advisory group, shows which gaffes are most prevalent.

The firm surveyed 880 clients in the United Kingdom, the United States, South Africa, Hong Kong, Japan, the United Arab Emirates, Indonesia and Thailand who are worth at least $1 million.

Asked what their No. 1 investment mistake was, 23 percent of respondents listed failing to properly diversify their holdings.

Editor’s Note:
New Warning - Stocks on Verge of Major Collapse

Meanwhile, 22 percent said it was investing without a plan, 20 percent said it was making emotional decisions, 16 percent said it was failing to regularly review their portfolios and 14 percent said it was focusing too heavily on an investment's historical returns.

As for the importance of an investment plan, "anyone who has an investment plan can expect their portfolio to outperform those without a plan," deVere CEO Nigel Green said in a statement. "To my mind, unless you have a sound investment plan you are gambling, not investing."

When it comes to investing emotionally, "most decisions in life are emotional to some degree, but making excessively emotional decisions can prove deadly when it comes to investments," he said.

Holly Cook, manager of investment research firm Morningstar's U.K. website, cites five common investment mistakes to avoid:
  • "Letting anxiety rule your head,
  • "Trying to time the market,
  • "Misunderstanding diversification,
  • "[Thinking that] old age means it's time to pull out of stocks,
  • "Procrastination or inertia."
Editor's Note: Secret Wall Street Calendar Uses Strange ‘Crash Alert System,’ Gets 18.79% Annual Returns

© 2019 Newsmax Finance. All rights reserved.

   
1Like our page
2Share
InvestingAnalysis
Millionaires make investment errors just like the rest of us, and a survey conducted by deVere Group, a financial advisory group, shows which gaffes are most prevalent.
deVere, millionaires, investment, diversify
269
2014-44-04
Wednesday, 04 June 2014 09:44 AM
Newsmax Media, Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved