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Tony Robbins, renowned life and business strategist and New York Times bestselling author, has dedicated himself to spreading personal finance literacy across America. As a member of CNBC’s Financial Wellness Advisory Council, he’s continuing to share his insights and key strategies to help improve Americans’ financial future.
Throughout his career, Robbins has had the opportunity to interview some of the smartest investors on the planet, including Warren Buffett, Carl Icahn, and Ray Dalio. When it comes to investing, the one mantra they tell Robbins over and over is that most investors fail simply for psychological reasons. In other words, Robbins says, our own brain can be our biggest liability.
According to Robbins, these are the three biggest mistakes that will derail any investor’s success.
Someone tells you something and you believe in it, and then you go and talk to everyone else who believes in the same strategy, Robbins said. “If you don’t ask for a different opinion, that will sink your ship,” he said. “The greatest investors are looking for people that are well qualified, not for somebody on the internet.” Robbins says great investors seek out someone who will disagree with them and share why so that they can evaluate and make better decisions.
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Some people just get so overconfident, he says, especially men.
“Research shows that women actually invest better than men do when it comes to trading, because men trade more often. They’re overconfident,” he says.
According to Robbins, negativity bias is part of the human brain. “We have a 2-million-year-old brain that was designed to save us from the saber-toothed tigers. Always looking for what’s wrong. Always ready to run or to fight or to freeze.” Robbins says that is the part of your brain that will never allow you to become financially free.
“You gotta understand that negativity is the natural piece. Do your homework and you won’t be negative. You’ll get in the market and you’ll win.”
Check out 4 Money Lessons Everyone Should Know by Age 25 via Grow with Acorns+CNBC.
Disclosure: NBCUniversal and Comcast Ventures are investors in Acorns.
