The 4 Investors Who Should Worry
The one who has a large portion of their portfolio concentrated in a small handful of stocks
Don’t ever own so much of one thing that you can make a killing in it, or get killed by it
The person who has been basing their investing decisions on advice from “experts” who have been calling for a crash every day for the last 12 years
Often this shtick is carefully crafted by sales people, trying to hawk a newsletter, book, website, social media account, TV gig, etc. There’s an old story about how Warren Buffett’s long-time partner Charlie Munger went into a fishing shop in Minnesota. And the shop had a remarkable display of all kinds of brightly colored fishing tackle. Charlie said to the store owner “look at all of these purple and blue lures, do the fish bite on these?” and the owner said “Mister, I don’t sell ‘em to fish.”
Those who have been panic selling on big down days in the market, and then buying back on up days
This is what that tends to look like…
- Sell on Fear
- Buy on Greed
- Repeat Until Penniless
They probably would be better off going to Vegas with their $, and there would be a lot less paperwork.
The one who is thinking about investing in some sort of “crashproof” scheme which supposedly will give you “all the market upside and none of the downside”
Someone will always be there to sell you the dream, but you get to live the nightmare alone
Any opinions are those of Rick Wagner and not necessarily those of Raymond James. Investing involves risk and you may incur a profit or loss regardless of strategy selected. Prior to making an investment decision, please consult with your financial advisor about your individual situation.
The views expressed herein are those of the author and do not necessarily reflect the views of Raymond James & Associates or its affiliates. All opinions are subject to change without notice. Neither the information provided nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Past performance is no guarantee of future results.
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