Being Rich Doesn’t Mean Being Smart About Money. 11 Costly Mistakes to Avoid.

Published: November 8, 2023

Andrew Krei, co-chief investment officer, Crescent Grove Advisors: One mistake applies to public-company executives we work with who have generated their wealth through a concentrated position in a stock. Once they have amassed a large concentration through the years, they’re hesitant to sell off any of the shares. They can overvalue their knowledge of the company, or they may still be in a position of control where they feel they can dictate performance to an extent. And maybe there’s an element of underappreciating the macro factors and headwinds that can have a disproportionate impact on stock returns. So this idea of not diversifying, of holding on too long in some of those positions, is a big mistake we see.

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