Invest in something cared about, and there can't be a loss
Yesterday, tarazkp told me that if you grind at something you cared about, there can't be a loss. And it's the reasonable thing to do. This is because working at something you care about gives you the endurance to put the odds of success in your favor. Source This could be seen as an important aspect of our financial strategy too. When we invest our money in companies that we love, or say, now, in a Hive project that we love and care about, we will be able to grind through the hard times.
It's a double burden to invest in something you do not care about. You will lose interest the moment something isn't going well. But when you care about this company or this project you will feel as though you are a part of something big and you will be less likely to give up.
I watched Everything Everything yesterday with my friend, and in one of those scenes, Madeline asks Olly, why his mum wouldn't leave his dad even though he treats her badly. Olly said, his mum had been asked several times, and she always tells him, love makes people do crazy things and he will understand when he grows up.
And she was right, Madeline who loved Olly risked her life for him several times. And in terms of investing and our money, it will be nearly possible to give up on our portfolio because we care about the company, its mission statement, the team, its products, etc.
We watch people stay in a bad relationships and we think they are crazy but no one is really crazy. It all boils down to being reasonable and not rational. You would think these people should be rational enough to see that it's not working out and leave their partners. But what you may not be seeing is how unreasonable it seems to them to leave someone they have been with for their entire life and just mindlessly give up on them, and move on. It will take a lot of willpower to do that.
Most of them stay because of their children, others because of what the world will think of them. Either way, their decision makes the most sense to them and may seem crazy to you.
So when someone is investing in something, he must have thought hard about his 'why', before he left his money dangling in the stock market and holding on through tough and happy times.
This means people tend to take a more reasonable approach to investing than a rational one. This is because no matter how much you think you know, emotions run the world more than facts and spreadsheets.
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