Most Common Investor Mistakes According to Dennis Gibb of Sweetwater Investments

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Investment financial adviser Dennis Gibb of Sweetwater Investments talks about the most common mistakes that investors make. They talk about the important factors that potential investors must consider when making investment decisions.

Dennis Gibb
"Every company will stumble and fall at some point in time. I don’t care how good they are or what they’re making. Eventually they stumble and fall, the question is "When?""

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Dennis Gibb has been hailed as one of the 100 best independent financial advisers in America as rated by industry consultant R.J. Shook of the Winner's Circle organization in Boca Raton, Florida. For most of his 30-year career he has been helping investors make crucial financial decisions and ultimately put their lives on track.

As the principal shareholder of investment company Sweetwater Investments, Dennis has encountered many people making investment mistakes. These mistakes eventually lead to failure. In his interview with Ben Brashen on the Brashenomics radio show, on 1150 AM KKNW Seattle, hetalks about the most common mistakes that investors make.

Number one is that they pay to much in fees. He says that the best way to avoid this kind of problem is simply to seek out another company that does not charge as much in fees but offers the same quality of service. Number two, investors exchange quality for quantity. Investors tend to go for the high gain, high risk investment. In essence Dennis advises investors to look beyond the face value of the profit and take into consideration the amount of risk involved.

Then he talks about the bandwagon mentality. Investors hear about someone racking up the profits from one form of investment and they do the exact same thing. Dennis says, "It's not their story." In addressing the issue, Dennis quotes Shakespeare, "This above all, to thine own self be true." The advise is the most basic for almost every human endeavor. Be yourself, know what you want, know what you can do and do it.

Dennis also advises against buying penny stocks as these are all manipulated. One investment he recommends highly and in fact calls it as "the greatest investment innovation in the last 30 years," is the exchange trust fund. Compared with open-ended funds, ETFs can be bought and sold all day and have much lower fees.

Dennis talks about the importance of picking stocks carefully. The key to making successful investments is making the right asset allocation. Diversity keeps the risk of losses down. Another important tip for investors is to acknowledge their capacity to manage their assets. Dennis says on hiring investment managers, "...it’s just like hiring somebody to work at your house. I mean, yeah, you can do it, but you might end up you know, electrocuting yourself or chopping your fingers off..."

Dennis leaves off with the wise advise: Watch your investments carefully and know when to get out. He says, "Every company will stumble and fall at some point in time. I don’t care how good they are or what they’re making. Eventually they stumble and fall, the question is "When?""

Sweetwater Investments provides financial planning services in Redmond, Wa and throughout the Puget Sound, and offer other services such as retirement planning, investment consultation, estate planning, divorce analysis, business exit planning, and much more.

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