3 blue-chip stocks to retire with and 5 investing mistakes to avoid

Learn from millionaires' mistakes and make your retirement more comfortable.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

We should all try to learn from successful millionaires and billionaires to guide our own investing. Especially when it comes to preparing for our retirement over decades. Simple mistakes can reduce our returns and lessen our wealth later on.

But rich people make mistakes, too, so we benefit from avoiding those mistakes and learn from someone else's bad experience. A recent international survey revealed the top five investing mistakes of 800 people with investable assets of US$1.5 million or more. What are they?

#1- Failure to diversify

#2- Investing without a plan

#3- Making emotional decisions

#4- Failing to regularly review their portfolio

#5- Focusing too heavily on the history of an investment's returns

Let's work on the top two mistakes and look at three blue-chip stocks that have proven track records and the potential to grow into the future.

Flight Centre Travel Group Ltd (ASX: FLT) is the number one market leader for travel and holiday reservations. It has more than doubled earnings in the last four years and full year dividends have been rising steadily as well. It has a 2.9% dividend yield.

Its overseas expansion into big markets like the UK are seeing strong results.

To diversify our picks, Macquarie Group Ltd (ASX: MQG) is an investment bank that would give us exposure to finance and financial services. The bank is very active in corporate activities like IPOs, mergers and acquisitions, as well as capital raisings. It earns attractive fees for these services.

It is also expanding its residential home loan business to capitalise on the growing housing market. Low interest rates spur on more property purchases, so it is increasing its market share in this space.

Lastly, invest with a plan by taking advantage of the coming LNG export market. Santos Ltd (ASX: STO) is an energy producer that is part owner of the GLNG project being developed in QLD. It has oil and gas operations in the Cooper Basin region to supply the project.

It also owns 13.5% of the PNG LNG project, which has just started shipping its first LNG in May. This will mark the start of transformational growth for Santos, according to the company.

Motley Fool contributor Darryl Daté-Shappard does not own shares in any company mentioned. 

More on ⏸️ Investing

A white and black robot in the form of a human being stands in front of a green graphic holding a laptop and discussing robotics and automation ASX shares
Technology Shares

Joining the revolution: How I'd invest in ASX AI shares right now

Advances in artificial intelligence (AI) could usher in a new industrial revolution. Here’s how you can invest in it.

Read more »

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »