TY  - BOOK
AU  - Swedroe,Larry E.
AU  - Balaban,R.C.
TI  - Investment mistakes even smart investors make and how to avoid them
SN  - 9780071786829 (alk. paper)
AV  - HG4521 .S898 2012
U1  - 332.6 23
PY  - 2012///
CY  - New York
PB  - McGraw-Hill
KW  - Investments
KW  - Psychological aspects
KW  - Investment analysis
N1  - Includes bibliographical references and index; •	PART 1: Understanding and controlling human behavior is important for investment success
o	MISTAKE 1 Are you overconfident of your skills?
o	MISTAKE 2 Do you project recent trends indefinitely into the future?
o	MISTAKE 3 Do you believe events are more predictable after the fact than before
o	MISTAKE 4 Do you extrapolate from small samples and trust your intuition?
o	MISTAKE 5 Do you let your Ego dominate the decision-making process?
o	MISTAKE 6 Do you allow yourself to be influenced by a herd mentality?
o	MISTAKE 7 Do you confuse skill and luck?
o	MISTAKE 8 Do you avoid passive investing because you sense a loss of control?
o	MISTAKE 9 Do you avoid admitting your investment mistakes?
o	MISTAKE 10 Do you pay attention to the “experts”?
o	MISTAKE 11 Do you let the price paid affect your decision to continue to hold an asset?
o	MISTAKE 12 Are you subject to the fallacy of the “hot streak”?
o	MISTAKE 13 Do you confuse the familiar with the safe?
o	MISTAKE 14 Do you believe you are playing with the house’s money?
o	MISTAKE 15 Do you let friendships influence your choice of investment advisors?

•	PART 2: Ignorance is not bliss
o	MISTAKE 16 Do you fail to see the poison inside the shiny apple?
o	MISTAKE 17 Do you confuse information and knowledge?
o	MISTAKE 18 Do you believe your fortune is in the stars?
o	MISTAKE 19 Do you rely on misleading information?
o	MISTAKE 20 Do you only consider the operating expense ratio when selecting a mutual fund?
o	MISTAKE 21 Do you fail to consider the costs of an investment strategy?
o	MISTAKE 22 Do you confuse great companies with high return investments?
o	MISTAKE 23 Do you understand how the price paid affects returns?
o	MISTAKE 24 Do you believe more heads are better than one?
o	MISTAKE 25 Do you believe active managers will protect you from bear markets?
o	MISTAKE 26 Do you fail to compare your funds with proper benchmarks?
o	MISTAKE 27 Do you focus on pretax returns
o	MISTAKE 28 Do you rely on a funds descriptive name when making purchase decisions?
o	MISTAKE 29 Do you believe active management is a winner’s game in inefficient markets?
o	MISTAKE 30 Do you fail to understand the Tyranny of the efficiency of the market?
o	MISTAKE 31 Do you believe hedge fund managers deliver superior performance?
o	MISTAKE 32 Are you subject to the money illusion?
o	MISTAKE 33 Do you believe demographics are destiny?
o	MISTAKE 34 Do you follow a prudent process when choosing a financial advisory firm?

•	PART 3: Mistakes made when planning an investment strategy
o	MISTAKE 35 Do you understand the arithmetic of active management
o	MISTAKE 36 Do you understand the bear markets are a necessary evil
o	MISTAKE 37 Do you treat the highly likely as certain and highly unlikely as impossible
o	MISTAKE 38 Do you take risks not worth taking?
o	MISTAKE 39 Do you confuse before the fact strategy with after the fact outcome?
o	MISTAKE 40 Do you believe stocks are risky only if your horizon is short?
o	MISTAKE 41 Do you try to succeed even when success is highly unlikely?
o	MISTAKE 42 Do you understand the importance of saving early in life?
o	MISTAKE 43 Do you fail to evaluate the real cost of expenditure?
o	MISTAKE 44 Do you believe diversification is the right strategy only if the investment horizon is long?
o	MISTAKE 45 Do you believe that this time its different?
o	MISTAKE 46 Do you fail to tax manage your portfolio throughout the year?
o	MISTAKE 47 Do you let taxes dominate your decisions?
o	MISTAKE 48 Do you confuse speculating with investing?
o	MISTAKE 49 Do you try to time the market?
o	MISTAKE 50 Do you rely on market Gurus?
o	MISTAKE 51 Do you use leverage to try to enhance investment returns?
o	MISTAKE 52 Do you understand that there is only one way to be a buy and hold investor?
o	MISTAKE 53 Do you work with commission-based advisors?
o	MISTAKE 54 Do you spend too much time managing your portfolio
o	MISTAKE 55 Do you prepare your heirs
o	MISTAKE 56 Did you begin your investment journey without a road map?
o	MISTAKE 57 Do you understand the nature of risk?

•	PART 4: Mistakes made when developing a portfolio
o	MISTAKE 58 Do you consider investments in isolation?
o	MISTAKE 59 Do you have too many eggs in one basket?
o	MISTAKE 60 Do you underestimate the number of stocks needed to build a diversified portfolio?
o	MISTAKE 61 Do you believe diversification is determined by the number of securities held?
o	MISTAKE 62 Do you believe focused funds outperform?
o	MISTAKE 63 Do you understand that in times of crisis the correlations of all risky assets rise?
o	MISTAKE 64 Do you fail to consider your labour capital when constructing your portfolio?
o	MISTAKE 65 Do you believe the investment world is flat?
o	MISTAKE 66 Do you confuse indexing with the exclusive use of an S&P fund?
o	MISTAKE 67 Do you consider your home as your exposure to real estate?
o	MISTAKE 68 Do you fail to see the risk in high- yield investments?
o	MISTAKE 69 Do you purchase products meant to be sold, not bought?
o	MISTAKE 70 Do you chase the IPO dream?
o	MISTAKE 71 Do you understand that you can be too conservative?
o	MISTAKE 72 Is your withdrawal assumption rate in retirement too aggressive?
o	MISTAKE 73 Do you hold assets in the wrong location?
o	MISTAKE 74 Do you believe that all passively managed funds are created equal?
o	MISTAKE 75 Do you trust but fail to verify?
o	MISTAKE 76 Do you have a plan B?
o	MISTAKE 77 Do you keep repeating the same mistakes?

N2  - A guide to avoiding investment mistakes reveals the most common errors investors make and provides a framework for rethinking investment and money management strategies
ER  -