Problem: Loving a Company or Stock
Even experienced investors have companies they're passionate about for personal reasons. Their reasons can include admiration for the company's management, products or philosophy. The problem with falling in love with a certain stock is that selling it becomes much more difficult. Just because you love your smartphone, for example, doesn't mean the company's stock is a good investment.
Similarly, investors might hold on to a stock longer than appropriate. Although this problem is less likely to impact professional asset managers, experienced investors with well-managed portfolios are susceptible under the right circumstances. Some research indicates that selling stock is typically harder for all investors than buying.
Avoid these 20 worst mistakes rookie investors make.