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Sunk Cost Fallacy: Why QUITTING Might Be A Good Idea Afterall

The most annoying thing about being in a toxic relationship was how hard it was to let go.

The feeling of “After all I have invested…” Red flags looking pink. Living in denial of the inevitable.

She goes out with friends at night and doesn’t pick up calls or reply to texts all night. “Maybe she truly slept off”. Stories not adding up but you keep ‘talking about it’ because “one day she will change”.

Holding on because you’ve invested a lot. It’s called Sunk Cost Fallacy.

I gambled for a few weeks. And every weekend I kept throwing more money because “after all I’ve invested already. Let me just try to hit once” Sunk Cost Fallacy (SCF).

In 2010, Nokia invested 5 billion dollars in R&D. Only for the market to change. Other companies like Apple were selling more phones. But Nokia kept doing what wasn’t working. Because “after all I’ve invested” By 2014, Nokia was dead. Sunk Cost Fallacy (SCF).

Another subtle reason for Sunk Cost Fallacy is the feeling of “what will people say?”

School is clearly not working for my child but “What will people say if I let him drop out?” Crypto keeps hurting me but “what will people say if I stop being a trader now?” Sunk Cost Fallacy.

In business and in life, sometimes, just let go. Whether you invested 5 hours or 5 years, $5bn or $5, if it’s not working, you’ve got to make the tough call. Innovate, pivot, or let go completely. Don’t let SCF get the better of you.

G.

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