#263 The Biggest Investing Mistakes Physicians Make ft. Peter Kim, MD

Why Smart Doctors Make Bad Investing Decisions

Peter begins the episode by asking a question many of us have wondered: “Why do so many physicians—some of the smartest and most hardworking people—struggle with investing?” It’s not about intelligence. It’s about never being taught how to think like an investor. We’ve trained for years to make critical decisions in medicine, but no one gave us the same training for our finances.

He shares that many doctors start investing out of burnout or frustration. They want passive income, which is great—but they often jump in without a clear plan or personal goals. That’s like running a race without knowing where the finish line is.

Peter urges us to ask ourselves what our ideal life looks like. Do we want freedom now or later? Do our investments help us live that life sooner—or delay it until retirement?

He points out that many of us rely too much on financial advisors who don’t actually understand our lifestyle goals. The first step is reclaiming that control and building a strategy based on your own definition of success.

Tax Benefits Are a Bonus—Not a Strategy

Next, Peter dives into a mistake he sees all too often: letting tax benefits lead investment decisions. As doctors, we’re constantly hit with high tax bills, so when something promises deductions—like real estate syndications—it’s tempting to say “yes” right away.

He reminds us that while things like bonus depreciation and 1031 exchanges sound appealing, they should never be the main reason you invest. If a deal only looks good because of the tax perks, it’s not a good deal.

The real question you should ask is: Would I still invest in this if there were no tax benefits at all? If the answer is no, it’s probably best to pass.

Peter’s message here is simple: focus on deals that make sense on their own. Let the tax savings be the cherry on top, not the foundation.

The Right Way to Diversify

Peter transitions into mistake number three: failing to diversify. He’s seen it countless times—doctors fall in love with a certain asset class (stocks, real estate, startups) and go all in. The problem? If that one investment crashes, you’re left exposed.

Diversification isn’t just having “different” investments—it’s about managing risk across timelines, asset types, and even sponsors. A strong portfolio should still bring in income whether the market is up or down.

Peter shares that building wealth is about steady returns over time, not hitting a home run on one risky deal. By spreading out your investments and learning from multiple sources, you increase your chances of long-term success.

So before going all in on that shiny new deal, take a step back. Is your portfolio balanced? Are you overexposed to one strategy or person?

Who’s Holding the Scalpel? (Vet Your Sponsors)

Now, Peter gets personal. He talks about how many physicians get excited by a slick investment pitch—but forget to vet the most important part: the person running the deal. He compares it to surgery. You wouldn’t let a stranger operate on your family member without knowing their background, right?

The same logic applies to investing. You’re not just betting on the deal—you’re betting on the operator. A great sponsor can help steer a project through tough times, while a bad one can ruin a perfectly good opportunity.

Peter gives practical tips: Ask about their track record. Find out what their worst deal was and how they handled it. Speak with other investors if you can. A good operator won’t shy away from your questions—in fact, they’ll welcome them.

He’s seen bad operators destroy good deals firsthand. So take your time, ask the hard questions, and protect your capital.

The Hidden Cost of Doing Nothing: Grab Our FREE PDF Checklist!

Peter closes the episode with a mistake that’s harder to spot: inaction. Doctors often get stuck in “analysis paralysis,” always researching and waiting for the perfect deal. But that perfection never comes—and neither does progress.

He shares a story about a friend who waited years for the market to crash before investing. That moment never came. And while Peter was gaining experience and returns, his friend stayed stuck on the sidelines.

The lesson? You don’t need to go big right away. Start small. Read a book. Join a course. Make a small investment. Just get moving. Every step gives you more clarity and more confidence.

Waiting for perfect is a trap. There’s always a reason not to act—but those who take action, even imperfectly, are the ones who grow their wealth.

He also shared our downloadable resource: Physician’s Investing Mistake Checklist: 7 Costly Errors to Avoid—a fast, practical guide to help you avoid 7 common (and costly) mistakes. Use Peter’s proven tips to align your strategy, avoid overwhelm, and grow with confidence.