The 6 biggest investment mistakes

At Investment Owl we work with our clients for years – and understand all about their goals, risk appetites……….and their past mistakes. From more than 30 years of experience here are the six biggest mistakes that people make when they choose a bad investment:


6. Trusting their bank

Investing with the bank is safe, right? Wrong. Sometimes. The problem with the banks are that generally their rates are poor, their charges high, their advice limited to their own products……and their staff under way too much pressure to hit the monthly target. I have never met an investor who was happy with investments via their bank. Bank investment clients are not always unhappy but they are never enthused.


5. Not understanding the investment

Seriously, if you don´t understand it ask until you do. Or don´t invest at all. Salespeople rely on you not asking questions and understanding the way it works. If it doesn´t make sense ti you and you can´t understand how it makes the profits it needs to repay and reward you then it probably won´t.


4. Investing in the “latest big thing”

Two years ago it was  Crypto-currency, last year Marijuana, this year AI (Artificial Intelligence). The latest thing! The biggest growth!! The most amazing and un-missable opportunity!!! The truth is that by the time it hits the mainstream media the value has probably gone and the scammers have definitely arrived. It may be a great sector but it needs to also be a great business, management team, delivery method and business plan.


3. Illiquidity

It doesn´t matter how much the paper value has increased……if you can´t sell it. If no-one is promising to give you your money back on a certain date, or if you don´t know how you would turn the investment back into cash yourself…… shouldn´t invest if you are likely to need the money back in the short term (1-3 years)


2. Investing too much

Regardless of performance – if you invest money that you later need for something else the investment experience will be a bitter one. The ideal portfolio for most people looks like this – 50% property and directly managed businesses/30% arms length investments like ours/20% cash for emergencies or opportunities.


1. Listening to a friend

Unless you are particularly chummy with Warren Buffett or a professional investment expert then don´t listen to friends, family or the bloke in the pub. There is a reason that they are still working or long-term unemployed. They don´t know what they are talking about. Almost without exception financial advice or recommendation from friends and family never work out.

We will tell you exactly how it works; whether it is a fad, scam or fantasy; how much it is sensible to invest; how you will get your money back; we are not limited to a single organisations products; we don´t have sales targets we have clients; and we won´t be offended if you decide not to follow our lead.

Altogether preferable, infinitely more efficient, and certainly more enjoyable than a lecture from Uncle Derek or a soliloquy from that bloke at The White Lion. Ask anything!