We should all try to learn from successful millionaires and billionaires to guide our own investing. Especially when it comes to preparing for our retirement over decades. Simple mistakes can reduce our returns and lessen our wealth later on.
But rich people make mistakes, too, so we benefit from avoiding those mistakes and learn from someone else’s bad experience. A recent international survey revealed the top five investing mistakes of 800 people with investable assets of US$1.5 million or more. What are they?
#1- Failure to diversify
#2- Investing without a plan
#3- Making emotional decisions
#4- Failing to regularly review their portfolio
#5- Focusing too heavily on the history of an investment’s returns
Let’s work on the top two mistakes and look at three blue-chip stocks that have proven track records and the potential to grow into the future.
Flight Centre Travel Group Ltd (ASX: FLT) is the number one market leader for travel and holiday reservations. It has more than doubled earnings in the last four years and full year dividends have been rising steadily as well. It has a 2.9% dividend yield.
Its overseas expansion into big markets like the UK are seeing strong results.
To diversify our picks, Macquarie Group Ltd (ASX: MQG) is an investment bank that would give us exposure to finance and financial services. The bank is very active in corporate activities like IPOs, mergers and acquisitions, as well as capital raisings. It earns attractive fees for these services.
It is also expanding its residential home loan business to capitalise on the growing housing market. Low interest rates spur on more property purchases, so it is increasing its market share in this space.
Lastly, invest with a plan by taking advantage of the coming LNG export market. Santos Ltd (ASX: STO) is an energy producer that is part owner of the GLNG project being developed in QLD. It has oil and gas operations in the Cooper Basin region to supply the project.
It also owns 13.5% of the PNG LNG project, which has just started shipping its first LNG in May. This will mark the start of transformational growth for Santos, according to the company.