One Fatal Investment Mistake

I spend a lot of time demonstrating how to invest in a sensible, reasonably safe way. Diversify, keep fees low, and be consistent. I should add to that: avoid fatal investment mistakes.

This tale from across the pond reminds me a bit of the physicians who lost tens of millions to a cryptocurrency scam. In this case, however, no one intentionally scammed anyone.

You may have heard not to mix business with pleasure, and when you go into business with a friend, that’s exactly what you’re doing. 

Let me tell you about my dad. He was a kind, thoughtful man and I learned many important things from him. But money was, sadly, never his strong point.

There is no one single recipe for successfully diversifying your investments, but here are some guidelines I have tried to follow myself.

How to diversify

Don’t even think about investing until you have paid off any interest-charging debts. You should also have at least three months’ of income in easily accessible form.

Aim to invest not only across different companies but different countries, sectors, and so on. A well-diversified global fund can do this for you.

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