The 3 biggest mistakes investors make

The 3 biggest mistakes investors make

12/1/2020

The average performance of the 500 largest US companies (Apple, Microsoft, NIKE, Starbucks, Amazon...) was 10.2% per year over a 30-year period (see figure below). However, the average return for an investor invested in the same index was 6.2% per year lower, a mere 4.0% per year. Sure, there are some costs associated with investing, but still... If those fees were 2% per year, that's still more than a 4% difference in the return of the average investor versus the return of the index as a whole. That's a lot of money over a 30-year horizon! What could it be?



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