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Don’t Make Me Say I Told You So 153

► The fear of losses has historically kept investors
out of the market during times of great investment

opportunity.

► The desire to make a lot of money in a short period of

time can also lead to irrational decisions by investors.
Investors may dream of the life they will live with these

easy riches, or they may be motivated by the feeling that
they are missing out while others are getting wealthy.

► Investors need to try to avoid making decisions based on

these emotions and stick to a well-thought-out, long-
term investment process.

5 Barclays Capital. “U.S. Aggregate Bond Index.” July 31, 2012. https://
ecommerce.barcap.com/indices/action/indexDownload?id=-61e7f5890
9bd8751d78382b9a5d4000f&pageId=9 this line (below) shouldn’t be here

8 Clements, Jonathan. “Why Otherwise Good Investors Cling to Mutual
Funds with Lousy Records.” The Wall Street Journal. August 17, 2005.

9 Associated Press. “Buoyed by Optimism, Dow Closes Above 15,000.”
The New York Times, May 7, 2013. http://www.nytimes.com/2013/05/08/
business/daily-stock-market-activity.html

10 Arun Rao and Pierro Scaruffi. A History of Silicon Valley: The Greatest
Creation of Wealth in the History of the World. 2011. http://www.scaruffi.
com/svhistory/sv/chap96.html
11 Ibid.

12 Ibid.

Chapter 4: The Most Common Investor Mistakes