Click hereo along with the crowd: If you are comfortably doing what the crowd is doing then you are probably too late.
‘When nearly everyone else is cautious about the outlook, they are probably wrong and things are going to get better. Equally, when very few are worried that is the time to be most wary…..the stock market is an excellent discounting mechanism. By the time everyone is worried about something it is normally largely in the price.’ (Anthony Bolton)
“You're neither right nor wrong because other people agree with you. You're right because your facts are right and your reasoning is right - that's the only thing that makes you right. And if your facts and reasoning are right, you don't have to worry about anybody else.” (Warren Buffett)
While it is important to do your own analysis and stand your ground, it is equal important to listen to the market – it is often right.
“The intelligent investor shouldn’t ignore Mr Market entirely. Instead, you should do business with him – but only to the extent that it serves your interests.” (Benjamin Graham)
Put too much weight on the macroeconomic outlook
Look beyond the economic projections for the next year or two. Quite often the short-term can look terrible just as the bottom in the stock market is reached; and it can look great just as the stock market reaches its peak and is about to fall.
I'm a full-time investor running my portfolio. I invest other people's money into the same shares I hold under the Managed Portfolio Service at Henry Spain. Each of my client's individual accounts is invested in roughly the same proportions as my "Model Portfolio" for which we charge 1.2% + VAT per year. If you would like to join us contact Jackie.Tran@henryspain.co.uk
investing is about making the right decisions, not many decisions.