The rich aren't so different. A new survey has found that millionaires make the same investing mistakes as thousand- and even hundred-aires. Holding just a few investments, relying on past performance to predict the future and investing based on emotions are universal pitfalls when it comes to investing.
Failing to diversify their investments topped the list of millionaire investing mistakes, according to a survey out this week from financial consultancy deVere Group. Nearly a quarter of the high net worth investors, 23 percent, said they were guilty of that portfolio transgression.
Just over a fifth, 22 percent said that investing randomly without a plan was their worst mistake while exactly 20 percent pinned their worst mistake on emotional investing.
Sixteen percent of millionaire investors said they neglected to review their portfolio on a regular basis. Only 14 percent of wealthy investors labeled their worst mistake as performance chasing.
Impatience, jumping in at a market top and listening to the cockamamie investing ideas of acquaintances and other miscellany were cited by 5 percent of those surveyed.
"To my mind, unless you have a sound investment plan, you are gambling, not investing," Nigel Green, founder and CEO of deVere Group said in the press release.
Even a stock-picking cat would do better than investors without a plan.
What was your worst investing mistake?
Get more Investing News with our free weekly newsletter.
Follow me on Twitter @SheynaSteiner
Senior investing reporter Sheyna Steiner is a co-author of "Future Millionaires' Guidebook," an e-book written by Bankrate editors and reporters. It's available at all the major e-book retailers.