In building a portfolio of various assets, investors should avoid those that are perfectly correlated, he said.

Does all this mean that investors should avoid bottling stocks?

Professor Kleiman also said that investors should avoid companies with no clear plan of succession, especially if the chief executive is 65 or older.

By not selling, the investor avoids fully facing the fact that he made a bad decision.

Q. How can investors avoid the dogs out there?

By investing small amounts regularly, investors avoid the dangers of trying to time the market.

The goal, the fund says, is to help prospective investors avoid a common tax mistake.

Some investors avoid companies that seem to be using accounting in creative ways.

He said investors should avoid funds with 12b-1 fees greater than 0.20 percent.

By contrast, once they sell a stock, investors cannot avoid the fact that they lost money.