I’ve worked with hundreds of clients over the course of my career — from those just beginning their investment journey to those with tens or even hundreds of millions of dollars. I’ve also advised seasoned professionals from the financial industry, successful CEOs and Hedge Fund managers, many of whom felt confident they knew exactly what to buy, when to buy, and how to play the market.

But no matter someone’s net worth or background, the same patterns kept emerging

Three investing mistakes consistently separated those who built long-term wealth from those who struggled to stay on track.

If you’re serious about growing your investments — and protecting what you’re building — these are the pitfalls you need to avoid.

1. Being Too Heavily Concentrated

Ever heard the phrase “don’t put all your eggs in one basket”? In investing, that’s called concentration risk — and it’s one of the biggest investing mistakes I see.

Being overly concentrated means your entire portfolio’s success depends on a single stock, company, cryptocurrency, or sector. That’s a high-stakes bet. One that, personally, I wouldn’t take — and I wouldn’t recommend you take either.

Sure, there are stories of extreme wealth being created through high concentration. Take Jeff Bezos, for example. A huge portion of his net worth has been tied to Amazon stock — and that’s worked out quite well for him. But for every success story like Bezos, there are countless others where concentrated positions led to massive losses overnight.

Special note if you have employee stock options or equity compensation:
You really need to be mindful of how much your employer’s stock makes up your overall net worth. It’s easy to overlook when stock options vest gradually or grow slowly over time — but before you know it, your financial future is riding heavily on the success of a single company (the same one that also provides your paycheck). That’s double the exposure, and double the risk if things take a turn.

Diversification is one of the most powerful tools in your investment strategy.

By spreading your investments across various sectors, asset classes, and geographies, you reduce risk and give your portfolio the opportunity to grow — regardless of what’s happening in any single part of the market.

Volatility won’t disappear altogether, unfortunately, but it becomes more manageable. Diversification doesn’t eliminate risk, but it gives you a better shot at riding out the storm.

2. Letting Emotions Drive Investment Decisions

If you’ve ever looked at your portfolio and felt your stomach drop — you’re not alone. Investing can be an emotional rollercoaster.

Markets rise and fall. Your account might be down from where it was six months ago, even if it’s significantly up from where you started. That discomfort? It’s natural. But it’s also where many investors go wrong.

When emotions take the wheel, smart strategies get thrown out the window.

Panic selling during a market dip or buying into hype during a surge is a fast way to derail long-term success.

Here’s what I remind myself — and my clients: the market has a long history of bouncing back.

In fact, over the last 20 years, if you missed just the 10 best days in the market, your overall return was cut in half. (Source: JP Morgan Asset Management – Impact of Being Out of the Market)

Trying to time the market — guessing when to jump in or out — usually does more harm than good.
Consistency and patience win. Every time.

3. Investing Too Little…or Too Much

One of the biggest mistakes I see is when people either barely invest at all… or go all in, investing every last dollar they have. Both can backfire—just in different ways.

Let’s start with those who delay investing or keep everything in cash. While that might feel “safe,” the truth is: your money is quietly losing value over time thanks to inflation. Cash sitting on the sidelines doesn’t stand a chance at keeping up with rising costs.

On the flip side, some people investing too aggressively—putting every spare penny into the market without keeping anything liquid. That’s risky too. If something unexpected happens and you need cash fast, you may be forced to sell investments at a loss (like in the middle of a downturn). Imagine needing that down payment you invested, only to find it’s worth 10% less when you need it.

So, what’s the fix?

Build a solid emergency fund.
Set aside cash for short-term goals (1–3 years).
Invest for the long term with money you won’t need soon.

The key is balance. You shouldn’t be hoarding cash if you don’t need it for years—but you also shouldn’t put short-term needs at the mercy of the market. Your investing strategy should align with your goals and your timeline.

If you’re looking for a financial plan that actually helps you build wealth, prepare for the future, and feels aligned and empowering—not overwhelming—you’re in the right place!