Investment Mistakes

According to Morningstar, the iShares FTSE/Xinhua China 25 Index ETF (FXI) is not only one of the 25 most popular exchange-traded funds on the market today, but also the most-traded China-focused ETF. In 2009 alone, it has taken in new investment inflows of $2 billion.

Just when I thought it might finally turn around, things suddenly took an unexpected turn for the worse.

Just when I thought it might finally turn around, things suddenly took an unexpected turn for the worse.

Government intervention, like it or not, is everywhere in today's economy. While companies such as Goldman Sachs (NYSE: GS), JPMorgan Chase (NYSE: JPM), and American Express (NYSE: AXP) repaid their bailout funds in full, Washington still has a firm grip on companies such as Citigroup (NYSE: C) and Bank of America (NYSE: BAC). These ownership stakes that took shape around this time last year were unprecedented, to say the least.

I've become aware recently of a not-so-great habit I've gotten into in my investing: When I decide to invest in a company, I often buy too little of it.

Four minutes from now, you and I are going to make a bet -- and I can virtually guarantee you will lose.

With the market still down about 20% over the past year, there should be plenty of cheap stocks out there today. Right?

Famed mutual fund manager Bill Miller has often said that when it comes to investing, the "lowest average cost wins." What he means by that is simple: If you want your investments to do well, you need to do your heaviest buying when stocks are cheap.

As any graduate of Alcoholics Anonymous knows, the first step to setting out on the proper path is admitting your weakness.

If you're like me, you probably think you've got it figured out -- the stuff that matters, anyway. But just in case, I hope you'll take a moment and read on.