Talk to any wise person and one learning that you are most likely to take away is that you should tread your path carefully.
And if you hear Charlie Munger, Warren Buffett’s best buddy and partner in Berkshire Hathaway; he puts it like this.
AVOID BIG MISTAKES.
Quite simple.
When it comes to investing, the rule stays the same.
When you are out there to build your portfolio of equity mutual funds, you may not be very lucky all the time to find the best performing funds. But what you can and should is that when you set out to pick your funds, ensure that you avoid the big mistakes.
How do you avoid the big mistakes?
Usually, investors select funds that have delivered the highest returns in the past. That’s the easy bait. But that also akin to entering DANGER ZONE, a sure-shot recipe for disaster.
The only point that should be noted in this regard is: