Investing sounds so simple: Buy low, sell high, make money.
But just like the odds of betting against the house in Las Vegas, if it were that easy, everyone would be millionaires.
Right now, Wall Street is having the equivalent of a bargain-basement sale (just look at Warren Buffett’s buying spree), but investors feel safer buying stocks such as Apple at premium prices, explains financial planner Benjamin C. Sullivan of Palisades Hudson Financial Group in Scarsdale, N.Y. It’s irrational. But paying top dollar is just one example of mistakes naïve investors make. There are plenty of others, according to financial experts.
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