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Debunked: 3 myths about investment portfolio management
October 19, 2020 at 7:00 AM
a laptop screen of an expert in investment portfolio management

Everyone dreams of making it big as an investor, but not many people put in the work needed to become successful at it.

Part of the reason why investing can be so difficult for beginners is because there are a lot of tempting myths and half-truths out there that make investing seem easier than it really is.

But the reality is, successful investing requires a deeper knowledge of the market. It’s not enough to rely on simply investing strategies cooked up at a previous point in time because the market is always changing. Portfolio management, therefore, requires that you take a critical look at your potential investments before you make the jump.

So if you want to become a successful investor, start with the basics — and learn to avoid the half-truths along the way. Here are three myths most people have about investment portfolio management, as well as the truth behind these misconceptions.

Myth #1: The stock market is a casino

If you don’t know much about investing, then it can certainly feel a lot like gambling. You put your money into the market, with no real way of knowing if you’ll win big or not.

But with the right knowledge and a systematic approach to your investments, you’ll find that you have a much better chance at outperforming the market.

Myth #2: Blue chip stocks will get you the best returns

Although blue chip stocks consistently perform well, it’s this same consistency that prevents you from getting huge returns on these investments. Because they usually do well, their price rarely dips — and in the off chance that they do, these stocks are often snapped up quickly by larger funds.

Plus, if you only invest in blue chip stocks, you’ll never cash in on the opportunity to invest in up-and-coming stocks before they make it big.

Myth #3: Invest in the market if you want to grow your wealth exponentially

You often hear about how you should invest in stocks as soon as you have the financial means to do so. But this way of thinking isn’t necessarily the best course of action for everyone.

As mentioned earlier, successful investors have an intimate knowledge of the companies and industries they invest in. it’s not enough to just ride whatever wave is happening at the time and invest in what’s hot at the moment.

However, there is one way you can work around this: by working with an expert in investment portfolio management.

Hand over the reins of your investments to a financial planner you trust, and you’ll be able to grow your wealth much faster — without so much of that inside knowledge that investing traditionally requires.

Get in touch with OWLFI today

When you’re looking for white-glove investment portfolio management, look no further than the retirement planning experts at OWLFI. Our firm, based in Lenexa, KS, helps homeowners and business owners alike set themselves up for success by expertly managing their finances.

In addition to investment portfolio management, our team also offers retirement planning, estate planning, insurance advising, and tax advising — making us the only partner you’ll ever need to maintain your financial health.

If you’d like to learn more, schedule a call with a member of our team by filling out the contact form on our website. However, if you have any questions or concerns about our services, talk to an OWLFI expert directly by calling 913-441-8380.