How to Invest Wisely: 5 Tips from Daniel Lacalle to Avoid Mistakes
Last Updated on 29 May 2025 by Urbanitae
Financial education is becoming increasingly present in our society. Greater access to information thanks to the Internet, along with a stronger commitment from financial institutions, has encouraged consumers to seek greater economic independence through conscious and well-informed investment decisions—especially among retail investors.
One of the main challenges for retail investors is deciding where to invest: the wide range of options (from fixed income to company stocks or real estate investment) makes it difficult to choose the asset that best suits each individual’s profile. Moreover, the overwhelming amount of information available online and on social media can lead to misleading cues, potentially trapping us into chasing unrealistic returns or investing in products that aren’t what they initially seemed.
That’s why the best advice is to turn to experts who can guide us along the right path, tailored to our investment profile and adapted to our capabilities and needs. Daniel Lacalle, Chief Economist at Tressis and one of the most well-known financial influencers in Spain, shares with Urbanitae the key factors that retail investors should consider when investing.
1. Be aware of common mistakes to avoid falling into them
According to Lacalle, there are certain behaviors that beginner investors repeatedly exhibit when they start investing. “The most common mistake is buying stocks when they’re going up and selling them when they’re going down,” Lacalle notes. This situation tends to occur more easily in times of market panic, such as the black days when Donald Trump announced new tariffs affecting many countries. It’s crucial to resist the urge to sell when things are going badly and, conversely, to avoid buying when things have gone well and the best entry point has already passed.
Another frequent mistake, according to the economist, is “confusing large, well-known companies with the best investment opportunities.” Investing in companies requires analyzing many variables, and merely recognizing a company’s name and associating it with potential profitability can lead to poor decisions.
2. Learn from mistakes
If investing were fully predictable, we’d all be rich. Unfortunately, markets are subject to many fluctuations that can be triggered by geopolitical events, negative news, a chain of poor corporate earnings reports… making it impossible to predict the future. What we can try to understand is what causes certain situations and learn from our mistakes (while acknowledging that some are inevitable) so we don’t repeat them.
Daniel Lacalle shares one of the mistakes that taught him the most: “My biggest mistake as an investor was believing a takeover bid (OPA) rumor. These rumors are often false, and we should never invest based on such news without rigorous analysis.”
3. Understand diversification
In a volatile, low-interest-rate environment like the one we live in, diversification is key to an investment portfolio, Lacalle points out. However, the most important thing, according to the expert, is truly understanding the concept—which is repeated endlessly, yet often misunderstood by retail investors. “Retail investors confuse diversification with simply having several investments. The goal is to spread investments to reduce risk. For example, owning six IBEX stocks and Spanish treasury bonds is not diversification—it’s concentration, because the risk factors are the same,” he explains.
Therefore, we should use different types of assets to “avoid putting all our eggs in one basket,” thus reducing exposure to risk. This asset selection should align with our investment profile and take into account tax implications, profitability, liquidity, and more.
4. Choose our sources of information wisely
Today, the range of financial content has grown exponentially, and financial education is not only promoted by sector institutions but also by media outlets offering content geared toward less financially literate audiences.
With all the available content, Lacalle considers it essential to seek information from independent sources: “Nowadays, there is a vast selection of independent books, videos, and podcasts that help us avoid blindly following recommendations. Instead, we can form our own ideas based on the knowledge we gain,” he says. Along the same lines, Lacalle sees social media as playing an “essential and very positive” role in the rise of retail investing—as long as we take care not to accept every piece of content at face value.
5. Independent advice
Investing on our own can be a good way to get started, but something that will truly benefit us in the long term (for example, when thinking about retirement) is receiving independent advice, which Lacalle describes as “fundamental.” This way, we gain a completely objective external perspective that can counterbalance our own decisions. Additionally, it’s helpful for long-term planning and can boost the sustainable growth of our assets.
