Sunk Cost Fallacy

𝗦𝗼𝗺𝗲 𝗤𝘂𝗲𝘀𝘁𝗶𝗼𝗻𝘀 𝘁𝗼 𝗣𝗼𝗻𝗱𝗲𝗿…

Once we’ve committed resources to something, we want to see it through. No one wants to be a quitter. We should all demonstrate GRIT, right?

Welcome to the sunk cost fallacy.

My favorite question: “If we weren’t already in this business today, would we enter this market?”

You can ask the same of your investments, whether they be time or money. Everything you’ve put into something up until this moment (the sunk cost) doesn’t matter. Blood, sweat, tears, and money are gone. Spent.

All that matters: What will it take from this point forward to see it through and is it worth it?

If you hadn’t already bought it or put time into it, would you still do it? If you stopped doing this, what else could you do?

Here’s a closely held secret of the most successful people I know: Sometimes quitters win.