The fact of the matter is, when you want to invest in truly innovative and industry-disruptive technology, you will most likely be drawn to companies with valuations that don’t necessarily fundamental sense. Instead, we invest to change the world.
Conspicuous spending is defined as the purchase of goods and services primarily for showcasing one’s status and economic wealth to society. It is a display of power.
Formerly a Portuguese colony, Macau is now one of the richest regions in the world.
My belief is that in 20-years, people will look back to 2019 and laugh and say “I can’t believe some people were betting against Musk.”
At the end of the day, the sunk cost fallacy is caused by pride, loss aversion, and irrational commitment to past decisions. The sunk cost fallacy makes us stupid. Don’t let it trick you.