7 Biggest Mistakes Investors Make HTML version
And by the way – Buffett does sell shares. He’s not obligated to tell you
about it on the day he sells, but the news media often learns about it after
the fact, as Berkshire Hathaway discloses its trades. So even buy-and-hold
investors understand that selling is often the right move. And to be fair –
the retail investor and the news media have seriously misinterpreted Mr.
Buffett’s strategy over the years. Of course, they’ve oversimplified it to the
point where it’s useless to individuals in many cases, and even harmful in
some. You can bet that’s not something that Warren Buffett intends.
If you need any proof that buy and hold isn’t necessarily the best strategy,
think about what happened to investors in the 2008 and 2009 bear market.
The general market had begun to show weakness in the autumn of 2007.
But as selling intensified in the autumn of 2008, many investors didn’t
know what to do.
Because there’s a bias among investors against selling, individuals waited for
things to get better. But it took until March of 2009 for a new uptrend to
begin – and as of November, 2009, most investors still aren’t back to
where they started!
Seven Biggest Mistakes Investors Make