Conclusion

“Mistakes are the best teachers. One does not learn from success. It is desirable to learn vicariously from other people’s failures, but it gets much more firmly seared in when they are your own” – Mohnish Pabrai

Successful long-term investing can be very rewarding, but it is crucial to avoid common mistakes that can impair investment returns. By focusing on diversification, making rational decisions, conducting thorough research, avoiding market timing, regularly rebalancing the portfolio, refraining from overtrading, and combatting the fear of missing out, private investors can increase their chances of achieving their financial goals and maximising investment returns. Luck may grant a fleeting taste of success, but lasting wealth is forged in discipline and sound strategy.

It is important to remember that as an investor, your goal is to have Emotional Intelligence (EQ) when investing because emotions underpin your decisions and your job is to understand and manage them wisely, otherwise they could rob you of long-term investing success.

Peter Higgins