Whats been your biggest financial blunder

sabretoothtigger

Glen_Clark wrote: »

If you include things we have not done we must all have made blunders because we have all missed some good investments.
Mine would be leaving 50% in instant access cash accounts over the last year waiting for some bad news from Europe etc to create a buying opportunity

If I had a bell to ring and a red flag to wave after reading these comments I would.
Judging by price is a mistake, whether its high or low. Theres nobody here who goes shopping and buys the lowest price tags, you'd end up getting home and having to eat dog food :laugh:

Missed opportunity is my biggest loss. Another one, FRES at 550, I had my finger on buy literally and it went to 2200. Thats a bigger gap up then down, hence the greatest loss was not buying rather then risking at least something on going to zero.
Trading principles are based around this realisation, Iam not suggesting risking it all and unit trusts or whatever might be far more suitable but the idea stands anyhow. Growth can easily outrank risk and I believe that is true today in some cases maybe even on average (longterm)

Quite often the market takes the stairs up and the elevator down. Warren Buffet keeps 20 billion in cash ready to deploy when things get nasty, I am selfishly hoping this happens

Market timing is a fools game, I totally agree but also buying at all time highs would be foolish IMO if you look at Fundamentals in the EU/China. I would rather sit it out now and cry over my potential lost profits.

Absolutely, we always have that argument in everything. If you bought at the gold peak price in 1980 it only fell then on; well if you ever buy all at once you are pretty much wrong straight away in risk terms at least.
That is the strawman fallacy by the way, to illustrate the weakest possible scenario as a backing to do not do something. Gold I'd say take the yearly price at least, its listed some place, anyone who buys their life savings in 1 year is a going to be a sucker from day 1 up or down

Home investors have a lottery ticket mind set. I do, I reckon everyone has that bias. Forget buying low price, buy value and free cashflow, secure margins or brand names like WB likes


WB 20bn is part of his insurance premium float. That money isnt his forever, keeping it aside is not that bearish for him.
He did so well because in 18 months, he used that cash, put it back in the till and then compounded the profits and used them again, etc
His emphasis was to never lose cash, hence compound gains. Right now you all know cash savings are losing every day so dont kid yourself you are following in WB footsteps.
His technique at least requires more study I reckon

lentrix92

I don't really have any major blunders - apart from some ccard debt that built up and was clear within a year by selling 80% of my record collection :-(

Major missed opportunities were not buying loads of tech shares in 99/00 selling and then shorting the hell out them later that yr !!

Also not buying a load of property back in 98 - early 2000's.

My best gain has to have been my first house bought in 98 +260% !!!

JohnRo

lentrix92 wrote: »

My best gain has to have been my first house bought in 98 +260% !!!

How much had the new house you moved into gained in the same time frame?

lentrix92

nowhere near that amount: Bought one that needed doing up/extending etc etc.

maryjanell79

Bought a car then wrote it off

Then saved up 10k in 2010 and instead of buying a flat during the recession I chose to go to New Zealand for 3 months! I don't regret the trip but I missed out on a great investment opportunity

badger09

1) Buying shares in a single company - Merlin Properties or something similar, (which has been obliterated from my conscious memory) following a 'tip' from a friend of a friend in the mid 1980s . Watched the price rise meteorically, then drop like a stone, wiping out the whole of my £12k inheritance:(

2) Separating from a partner in 1990 and deciding not to accept an early offer of £165k on a house we'd bought for £175k in 1988. We eventually sold for £125k :eek:

Doshwaster

1) Closing a couple of building society accounts before they demutualised.

2) Taking out PPI on a loan (unfortunately this predates when PPI claims are allowed)

Best gain was buying Barclays shares at the bottom of the banking crisis and selling them for over 4x. That money paid for a car.

Glen_Clark

Doshwaster wrote: »

1) Closing a couple of building society accounts before they demutualised.

Easily done. Every Building Society that demutualised had recently put out statements saying they were not going to demutualise. In those days there were still people who trusted financial services institutions to tell the truth. I took out a Prudential Personal Pension Plan thinking the 'Man from the Pru' would give me a fair deal. First thing he did was split it iinto 2 separate plans so he got 2 lots of commission at my expense. (because I put in a lump sum then annual payments he was able to claim himself comission selling 2 separate plans) I got it changed into one plan later after making a complaint that I had clearly been mis sold one plan as it is not in my interest to have 2. But I still can't find out what the commission and charges are because the plan pre dates the time when they have to tell you their charges. So I haven't added to it in about 20 years. Saved in Building Society Accounts. So I have been robbed by the BoE money printing instead of the Pru.

gadgetmind

Glen_Clark wrote: »

I still can't find out what the commission and charges are because the plan pre dates the time when they have to tell you their charges. So I haven't added to it in about 20 years.

Even if they did tell you, the woffle about unit cancellation would make close to zero sense. I'm pretty good with this stuff and no way could I work out what an old Hill Samuel pension's terms were on about.

I moved all the old bits and bobs to my SIPP and that was that.

RuthAnderson

i invested excess of money in share market and that cetainly caused me heavy financial crisis due to reduction in share values