5 Common Mistakes That Tank Your Returns

What are the major mistakes that hinder an investor's journey? Successful investing is all about avoiding mistakes because you have to get very few things just right. The first one, which comes to my mind, is actually not a mistake - it turns out to be a mistake in hindsight. 1. Starting late The magic of compounding is impressive but it actually shows up only after 10 years. In the initial phase of our life, when we are just starting out and earning, we have a lot of huge financial needs. We are starting from ground zero as independent individuals. At the same time, our income is quite low. We are able to find hundreds of excuses to procrastinate - saying, "I will do it tomorrow." Suggested read: Time to rethink your spending But my understanding is that investing starts only after you save. And savings are more about building a habit, not about how much money you have. You need to see how a small amount of money can become meaningful capital. Compounding at a higher rate works its magic over time. Wherein, starting early plays a very significant role, and that, I think, is crucial. 2. Timing the market In my 34 years of running Value Research and observing the markets, every time it looks like the market is at a level where it either can't make a comeback or is comfortably high, the reality often defies the

This article was originally published on February 07, 2025.