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7 Biggest Mistakes Investors Make

One: Using too many different
investing methods and styles.
As you might have guessed by our name, Simple Growth Investing, we’re
growth investors. In a nutshell, that means we focus on stocks with hot
new products, or an industry that’s in favor now. There’s something new
driving sales, which in turns drives profit growth.
And when professional investors – like mutual funds, banks, insurance
companies, hedge funds and pension funds – see those hefty earnings
increases, they snap up shares. And what does that do? It sends the price
higher.
An example of an outstanding growth stock from the past few years is
Apple. That’s a no-brainer: Think of the iPod, the iPhone, increased
purchases of MacBooks and iMacs. As the company continued innovating
and introducing great products, people kept buying. Investors caught on,
and the share price kept moving higher.
Another big growth stock has been Baidu, a Chinese Internet search engine
and portal. Another one that’s easy to understand. As more and more
Chinese citizens move into the middle class, they’re using the Internet
more, buying stuff online, playing games – everything people all over the
world are using the Internet for. And professional investors see plenty of
potential remaining for big growth in China – so they’ve been grabbing
Baidu shares.
Stocks like Apple and Baidu (and many others) have rewarded investors
with outstanding profits. Between January and October, 2009, Baidu
climbed 189%. Apple rose 120% in that time.
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Seven Biggest Mistakes Investors Make
 
 
 
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