What do you wish you'd known about investing?

badger09

I wish I

1) hadn't listened to 'friends' whose broker had a red hot tip in 1985. I lost a chunk of money inherited from my parents, while my sister built an extension with hers

2) had realised that (1) wasn't investing, but gambling

3) had done more research before investing my S&S ISA allowance in just a FTSE 100 tracker in April 2000 and again in April 2001

4) had realised that the subsequent market corrections were a further buying opportunity; at least I didn't panic and sell up

5) had used at least my S&S ISA allowance every year instead of saving in cash for far too many years :eek:

6) had found this website earlier than I did

aspiration_2

Assuming that natural resources like oil are limited and therefore stock value unlikely to go down.

Chickereeeee

Not to pay off the mortgage early, and invest in equities, but to buy the most expensive house I could afford at the time....

C

racing_blue

Chickereeeee wrote: »

Not to pay off the mortgage early, and invest in equities, but to buy the most expensive house I could afford at the time....

C

Is this your advice Chickereeee - don't pay off the mortgage, invest in equities instead, and buy the most expensive house you can afford?

Got to say this has worked for me too, clearly it is embracing risks though. If life doesn't deal you any low blows I agree it ought to work out well, and you will live in a good house along the way.

Not entirely sure I'm reading your post right though - maybe you are warning against this course of action?

Chickereeeee

racing_blue wrote: »

Is this your advice Chickereeee - don't pay off the mortgage, invest in equities instead, and buy the most expensive house you can afford?

Got to say this has worked for me too, clearly it is embracing risks though. If life doesn't deal you any low blows I agree it ought to work out well, and you will live in a good house along the way.

Not entirely sure I'm reading your post right though - maybe you are warning against this course of action?

Sort of. I actually meant I should have kept the equity investments in line with what I actualy did, but increased the mortgage (rather than paying it off) to get a more expensive house.

C

jimjames

I wish I'd had the money to have invested more when the market dipped but my main mistake was thinking that markets outside the UK were more risky than they actually were.

Back in the mid 1990s investing in the Far East seemed very exotic and potentially a way to lose your money. The reality was somewhat different and I wish I'd diversified more.

TypicalVillain

jimjames wrote: »

I wish I'd had the money to have invested more when the market dipped but my main mistake was thinking that markets outside the UK were more risky than they actually were.

Back in the mid 1990s investing in the Far East seemed very exotic and potentially a way to lose your money. The reality was somewhat different and I wish I'd diversified more.

Yeah that's is a good point, people usually don't realize that diversity reduces risk. Investing around the world in anything but the capital ratios (I believe the world market is roughly 50% USA and 50% everyone else) is equivalent to making a "region bet."

robotrobo

MadMat wrote: »

My biggest mistake - not listening to my mum when I got my first job at 16 - "pay your bills, then spend half and save half of whats left" she said!

I of course blew the lot on cars girls and beer - and wasted the rest!

Mat

its a good job you didnt smoke as well.:rotfl:

ManofLeisure_2

Through past experience I would say that the best way forward is to invest only in areas which are truly understood. For example, back in the 80's I jumped on the bandwagon and invested in technology funds.... just because it seemed like a good idea. I had no understanding of the sector, but had friends who had made 'a lot' of money investing in these funds and thought I could do the same. Big mistake :eek:. These days my approach to investing is far more considered .

Purplesky_2

Yay to this thread! I'm so pleased, because I appear to have done things the right way round (First S&S ISA payment done this month after 15 months learning about the financial world and markets, and nine months reading books on investing fundamentals and shares psychology). Looking intently for pot holes covered with leaves, though. Bet I have a little panic when I start to lose money regardless of all the 'book-learning'