8 Investment Mistakes That Will Make You Broke

4) “Friendly” Stock Tips

To eliminate all stock tips from friends would be just as bad as taking stock tips from friends simply because they are your friend. However, very rarely does a friend have a great stock tip.

Investing on a hunch, or because someone likes certain company or brand should be followed with extensive personal research. While, well meaning, unless your friend is an experienced and successful investor, stock-broker, or investment banker, there is a likelihood that their tip is a gut feeling, or based off of any of a million stock-tip articles written every day.

The truth is that there are no get-rich stock tips that don’t include time, consistent investing, and doing your personal diligence to make sure you are not throwing your money away. There is a big difference between a well-meaning stock tip, and a friend’s opinion.
Do yourself a favor and politely smile and tell your friend, “Thank you, I’ll look into that.”