Diversification is a watchword for most financial advisors, but many people still haven't caught on - even the wealthy. Some 27 percent of investors with at least $1 million in net worth said their No. 1 investing mistake before working with a financial adviser was a failure to diversify their portfolios properly.
That's according to a survey of clients of the financial advisory firm deVere Group in the U.S., U.K., Asia, Africa and Europe. The firm says the problems weren't because of a lack of knowledge about diversification, but because of what happens when habits and emotions get in the way of making good decisions.
Other regrets included 23 percent of clients saying they wish they had started investing earlier, 20 percent regretted focusing too much on short-term results when investing, 15 percent said they were emotional over investments and 8 percent said they did not keep enough cash in reserve.