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3 Bank Investing Mistakes to Avoid in 2013

http://www.fool.com/investing/beginning/2013/03/09/3-bank-investing-mistakes-to-avoid-in.aspx

John Grgurich
March 9, 2013

Though we've passed over the cusp of March, I thought it still might not be too late to offer bank investors some sage advice for 2013. The year is still young, and investing adventure awaits. Without further ado, then, here are three bank-investing mistakes to avoid for the rest of the year, and beyond.

1. Not investing in banks, period
This one is here just in case you've never invested in banks, but are interested in trying and perhaps a bit hesitant. And maybe I'm addressing how I felt about investing in banks not so very long ago.

For beginning investors, I think banks can be a bit daunting, especially if you come from the Peter Lynch school of investing: Essentially, invest in what you know and what you can get your head around. Hence, I think it's easier for most people to start off their lifetime investing adventures with classic consumer-goods companies, like Starbucks, Procter & Gamble, and Apple. Companies that you "get" right away. It's what I did.

But with a little homework, you can learn enough about how banks operate -- along with some basic do's and don'ts --