3rd May 2005
I read an interesting article last week by Martin Stacey (The Business) in which he identifies the seven deadly sins of the investor. And being me I immediately thought of the seven virtues as well, so today here are his seven deadly sins, and tomorrow will be my seven virtues – see if you can spot yourself!
- Greed – people commonly hold on too long to an investment- you never lose money leaving profit on the table for the next person.
- Gullibility – don’t just accept tips on face value – make sure you check everything before you ‘believe’ an investment tip.
- Loyalty – too often people hold onto an investment through loyalty – it was good once. Never let any emotion get in the way of your investment formula.
- Sloth – you’ll always lose money through laziness if you don’t keep an eye on what you have and what you are doing – get off your bum!
- Optimism – or at least false optimism – often people blindly look for the good news all the time – when realism and financial facts are paramount.
- Remorse – never wallow in what went wrong – learn the lesson and then just get over it.
- Recklessness – which is what people are when they get frustrated that a deal hasn’t come along = what they do is abandon their financial formulas and jump in blindly – oh dear!