Thursday, January 24, 2013

The most common mistake in investing

"...Too many investors are reactive decision-makers. If something has gone up, they say, "Ah, that's a good investment." They don't say, "That's more expensive."

And so, that's the most common mistake in investing.

I think the important thing here if I'm an investor is that the most important thing you can have is a good strategic asset allocation mix.

In other words, you're not going to win by trying to get what the next tip is – what's going to be good and what's going to be bad. You're definitely going to lose.

So, what the investor needs to do is have a balanced, structured portfolio – a portfolio that does well in different environments..."

Source:  Ray Dalio, founder of Bridgewater Associates*

* Bridgewater manages approximately $130 billion in global investments for a wide array of institutional clients, including foreign governments and central banks, corporate and public pension funds, university endowments and charitable foundations.

The information contained in this article does not constitute a recommendation, solicitation, or offer by D2 Capital Management, LLC or its affiliates to buy or sell any securities, futures, options or other financial instruments or provide any investment advice or service. D2, its clients, and its employees may or may not own any of the securities (or their derivatives) mentioned in this article.


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