‘7 Mistakes every investor makes’ Book review
In this book, Joachim Klement explores the 7 common mistakes that every investor makes, backed with research findings that are so revealing and beneficial to help investors get aware of their mistakes. Here are my 3 top learning points from the book:
1. Finding the right balance between short term and long term orientation using the combination of trading and investment techniques. – In my opinion, this point alone sets this book apart from others out there.
2. Trailing Profit Earnings Ratios (PE ratio) versus forward PE ratios backed by the author’s research findings was a great insight – It was great to know the advantage of using Trailing PE ratios.
3. Small boutique funds with fund managers having active shares within the fund seem to outperform other funds. In other words, when you have your money invested, you seem to take more responsibility and perform better. – I had the belief that you would be emotionally unattached if you were trading other people’s money and hence would perform better. However, the findings stated that the emotional detachment is outweighed by the responsibility and willingness to perform better when you have your money on the line
In addition, the tools and techniques to overcome these mistakes are well researched and well defined in the book. Overall, a must read and must have in all the investors’ book shelves.
To purchase the book, click on the link: https://harriman-house.com/7mistakesinvestor