Being emotionally attached
Sometimes clients feel emotional attachments to an investment. Whether it is sentimental, as in inherited from a deceased parent or something that was bought and declined in value, holding any investment without understanding the risks and potential rewards is a mistake we see often.
In general, the mistake is not diversifying. The warning signs that it is time to sell from an investment professional’s perspective include over concentration, i.e. having too much in one investment or when the client cannot articulate the investment’s merits or why they hold the particular investment in the first place.
--John P. Napolitano, Tailoring Strategies to Manage Your Financial Future, Braintree, Mass., 02184, 781-849-9200 x239, firstname.lastname@example.org