Learning from the Mistakes of Legendary Investors

In a recent issue of the AAII Journal, author Michael Batnick highlights missteps made by investing legends as outlined in his book Big Mistakes: The Best Investors and Their Worst Investments (Bloomberg Press, 2018). Investors tend to expect the future to look like the recent past. “We believe that the object in motion will stay in motion,” Batnick writes. “Successful investing is about finding the balance between being prepared for the good times to last… Read More

John Bogle on Common Investor Mistakes

In a 2014 interview with AAII Journal, Vanguard founder John Bogle outlined common investor mistakes and other thoughts about the market. Here are some highlights: “The biggest mistake investors make is looking backward at performance and thinking it’ll recur in the future,” says Bogle, citing the importance of reversion to the mean. “The winners in decade one tend to be the losers in decade two,” he says, and vice versa. Considering returns in “nominal dollars.”… Read More