Guides -
Investment Mistakes to Avoid at all Costs
Investment Mistakes to Avoid at all Costs
Common Mistakes in Investing

Investing can be rewarding, not only financially but, depending on what asset you choose, it can also be personally satisfying. The point is, to lower your risk and don’t be sucked into ‘get rich quick schemes. As the saying goes: ‘if it looks too good to be true, it probably is.’  

Impatience can be one of the biggest investing mistakes. Generally, the longer you wait, the better the outcome. That’s certainly true for tangible assets, like collectables. They typically include things like gemstones, memorabilia, art, antiques or cars. The list is long and the rarer the better. One caveat to remember though when investing in collectables – fakes are rife so make sure what you’re buying isn’t one of them. The market is also subject to the ebb and flow of changing tastes and trends. What may have been in demand this year, might be out of favour the next. A little bit of research into the historic demand for your chosen collectable might provide some insight into its future value but, like all investments, nothing is guaranteed.   

Many prefer the traditional stocks and shares approach, but these are subject to volatile and external forces too, like geopolitical activity, inflation and other economic factors. It can be a difficult process to navigate for amateurs and certainly no one should invest what they can’t afford to lose, at least in the short term.  

If you’re serious about investing, and realistic about the likely gains, then seek out a professional. DIY dealing is possible, and there are platforms designed to make it relatively simple, but nothing is as robust as expert advice from a reputable business.  

A good portfolio manager will steer you though the landscape and point out the pitfalls. They should also advise on the tax implications on any returns. However, wise counsel will not protect the investor from unfortunate falls in share prices.  

Cash in the Attic?

Rummaging around in junk shops is not considered a viable investment strategy.  

Of course, the value of absolutely anything can go up or down, suddenly and surprisingly. One day you could be the owner of aunty Edna’s ugly teapot, an eyesore that you keep well out of sight. Then an unforeseen demand for ugly teapots makes your pottery a priceless asset. Unlikely, but worth keeping track of where the Antique Roadshow are pitching up. You never know! 

If All Else Fails, Turn to Drink

No one can predict, with certainty, the future value of commodities or the trajectory of the stock market. 

However, the trade in fine wine and spirits has been generating impressive returns for some time and shows no signs of slowing. Indeed, forecasts (based on global export figures, rather than hopeful desire), suggest that the market has a long way to go yet.  

Whisky alone accounts for over £6billion in annual exports and cask investors have had record returns. The best bit? No Capital Gains Tax.  

For expert and reputable advice, Whisky Partners offers their members access to a personal portfolio manager who will guide them through the process step by step. With a choice of whisky from the finest distilleries, rum made at some of the oldest plantations and fine wines from famous vineyards, members can enjoy owning and trading their investments via an online platform.  

Or they could simply drink up. 


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