According to Tamryn Lamb, Allan Gray’s head of retail distribution, there are various common beliefs among investors which often lead to making investment mistakes. In a recent press release, Lamb shares what she believes are some of the most common investment myths.
Here are her 4 myths:
Myth #1: If it is too simple, it won’t work
“One of the most common mistakes that investors make is underestimating the power of simplicity. Simple methods, rules and techniques go a long way in enabling investors to reach their goals. Yet, many investors think that if something is too simple, it surely can’t work as everyone would be doing it. But, this isn’t true, especially when investing,” says Lamb.
Myth #2: Economic forecasts will help me find the next best thing
Investors looking for the next opportunity often turn to macroeconomic factors to determine whether markets will or won’t deliver strong returns. Lamb says that there are various problems with this. She mentions that it is a far safer strategy to invest based on fact rather than guess work.
Myth #3: Rely on your gut when you invest
One of the biggest culprits, according to Lamb, in making poor decisions is our emotions. When performance dips, investors often throw out their carefully considered investment strategies and change tack.
Myth 4: Quick wins will make me wealthy
The fourth myth is the mistake investors make by not being committed to the long term. When you invest, time allows your invested money to grow and compounding makes your money work harder for you.
Click here to read more and what Lamb discusses to avoid making investment mistakes based on these false beliefs.