Millionaires reveal their top five investing mistakes

Millionaires reveal their top five investing mistakes
A poll by one of the world’s largest independent financial advisory firms has found that failing to diversify is the most common mistake made by millionaire investors.
Investing without a plan, making emotional decisions, failing to review a portfolio and placing too much focus on previous returns made up the top five.
In the global deVere Group survey of 880 high-net-worth clients, when asked to reveal their number one investing mistake, 23 per cent of respondents cited failing to adequately diversify their portfolio. 
22 per cent responded investing without a plan, 20 per cent said it was making emotional decisions, 16 per cent answered failing to regularly review the portfolio, and 14 per cent claimed it was focusing too heavily on the history of an investment's returns.  
Lesser cited errors included impatience, investing near the top of the market, adhering to recommendations from acquaintances, and paying tax on the investments unnecessarily, amongst others.
Those polled by the organisation, which has more than 80,000 clients worldwide, are based in the U.K., the U.S., South Africa, Hong Kong, Japan, the UAE, Indonesia and Thailand and all have investable assets of more than £1m.
Nigel Green, deVere's founder and chief executive, commented: “Interestingly, there are minimal differences between the top five most common investment mistakes previously made by high-net-worth individuals."
“This close weighting could perhaps suggest that all of them are almost equally as significant and costly – and therefore must be avoided.”
“As the survey highlights, failure to diversify a portfolio is widely regarded as one of the most common investment pitfalls. Spreading your money around is a vital tool to manage risk. However, it must be used correctly. Diversification will only add real value if the new asset has a different risk profile,” he advised.
“Mistakes investing can and do occur – it is how they are best avoided, or at least mitigated, that is the key to success.  Learning lessons from people, like those we polled, who have overcome these common investment mistakes to go on to accumulate significant wealth in the longer-term is a way to reduce costly errors,” Green concluded.