3 Common Investment Mistakes to Avoid (With a Side of Beef Kebabs)

Greetings from Yosemite National Park — because why not talk about investments while cooking up some beef kebabs? In between marinating meat and tossing veggies on the grill, I want to break down three of the most common investment mistakes I see people make. Avoiding these can go a long way in helping you reach your financial goals,  whether that’s a comfortable retirement or simply building wealth over time.

1. Trying to Time the Market

One of the biggest mistakes I see is people trying to time the market, waiting for the "perfect" moment to invest or pulling out when things look shaky. Maybe it’s sitting on the sidelines because of an election or waiting for the economy to settle. I’ve seen this hesitation cost people hundreds of thousands of dollars.

Here’s the thing: to time the market perfectly, you’d have to know exactly when to sell and when to buy — twice. Most investors just don’t get that right. The better strategy? Stay invested. Time in the market always beats trying to predict it.

2. Chasing the “Hot Stock”

Ah, the lure of the next big thing. Whether it was tulips in the 1600s or Bitcoin and hot tech stocks today, history shows us the danger of chasing the hype. That fear of missing out (FOMO) can become expensive fast.

Now, that doesn’t mean you shouldn’t invest in high-growth investments. But know your risk tolerance and don’t over-concentrate. If too much of your portfolio is riding on one investment, you’re setting yourself up for trouble. It’s all about balance.

3. Ignoring Asset Allocation and Diversification

Lastly, let’s talk about asset allocation. Let’s make sure your portfolio actually matches your risk tolerance. It’s not just about what you own but how much you own of each thing.

I know diversification doesn’t sound sexy. Everyone loves the idea of owning just the S&P 500 or picking individual winners. However, from 2000 to 2023, a well-diversified portfolio performed similarly to the S&P with less risk. Why take on more risk for the same potential outcome?

The Takeaway

At the end of the day, successful investing often comes down to avoiding the obvious pitfalls:

• Stay invested; don’t try to time the market

• Don’t chase every hot stock you hear about

• Build a diversified portfolio that fits your goals and risk tolerance

It might not be flashy, but it works. In financial planning, getting to your destination safely matters more than how exciting the ride is.

If you’ve got questions or want to talk about your financial plan, reach out anytime at thewealthgardenfs.com. And if you enjoy these cooking + finance mash-ups, subscribe so you don’t miss the next one.

Connect With Jade! 

Jade Eagles on LinkedIn

Learn more by connecting with the WealthGarden team today!