Wrong Investments

We often come across literature motivating us to work hard, always believe in oneself and never give up unless we achieve what we are working for. Such stories would then be appended with examples of how successful people have worked hard and achieved success. Working hard is good. But these stories do not tell about 99 others who keep working looking down and fail. Fallacy of silent evidence. It is important to realise that sometimes things are not just meant to be the way you are trying them to be. It might make sense to take a pause, think and decide if it would be good to change tracks and invest on something else.

Working hard is good but not enough. Look at the Opportunity cost. There might be something else you love more – working on something else, playing with your kids, spending time with family etc. Also don’t fall down for “sunk cost fallacy” making you think “I have invested so much time (and money), I cannot let it go down the drain”, even if you are stuck in the dead-end.

Realize early. Move to the right tracks. Sell the dud stocks even if it means booking losses.

[thinking out loud (after making lot of wrong investments)]

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4 thoughts on “Wrong Investments

  1. I somehow fail to understand this obsession with ‘success’ and ‘acheivement’. This indicates that the society is constantly trying to measure constantly seeking validation. And a society that constantly seeks validation is not a happy society. Happiness is within and and not without.

    1. I agree, Prabal. Self-validation or, as Warren Buffet mentions, keeping an inner score card would make us more happy than constantly seeking validation from others.

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