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Investing
How to be a Successful Quitter
“Should I stay or should I go now?
If I go, there will be trouble
And if I stay it will be double.”
– The Clash
Years ago, I was part of an online community of entrepreneurs.
It was an informal group, where we shared information, ideas, and encouragement. At the invitation of the host Havi Brooks, I helped lead a teleclass for the group on “cutting your losses.”
I wasn’t so sure, at first, what I brought to the party.
Investment insights? I’m your girl. But “cutting your losses?” That struck me as too far afield from the sweet spot of my expertise. Until it dawned on me that all the years I spent in the investment trenches had taught me quite a bit about knowing when to call it quits. Something that is both hard-wired and socially conditioned into us to be difficult.
Humans are loss-averse. Countless studies have shown that even when the odds are identical, we are more conservative when the risks are framed in losses rather than wins. Our brains don’t want us to lose anything (even if it’s a problem). In our hearts, we are all hoarders.
Humans need to be consistent. In order to develop a healthy sense of self and identity, not to mention maintain…
