Ignore this Classic Business Law or Follow Your Instincts?

[kryptqnick]

Hm, that's a good dilemma the op described. Yes, it was a missed opportunity, but I think there will always be such cases. If one's an investor, one should follow the guidelines that give a higher chance of succeeding, and I think the investor had a good reason not to invest. If there are no other factors to consider, I wouldn't invest in something I don't understand. But I feel like my decision would also be impacted by other matters, such as the vibe of the team, whether their mission has a socially significant component to it (helping the environment, promoting education etc.), and perhaps also the gut feeling (but only if it's very strong because I normally rely on the rational things).

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[Gyfts]

I don't consider missed investment opportunities with the use of hindsight to be some perverse business acumen. How many people have "followed their instinct" only to lose money by getting involved in business matters they were grossly unaware of?

If your "instinct" is based on reasonableness with some level of familiarity with a businesses operations and profitability, that's enough to invest. Venture capitalists/angel investors won't have intricate knowledge of all the businesses they're investing in -- they do understand the fundamentals of the business model though.

[jacafbiz]

I think this is a fallacy of Hasty conclusion, this is an exceptional case to draw a conclusion from, he should have given other examples of projects he was approached to invest into but because he did not understand it he did not invest and ended up dodging a bullet. I still believe it is better not to invest in something you do not understand, you can't be the only one to invest in the Apple, Tesla, Facebook etc. of this world you win some, you lose some this is how life is, so whining on something you missed because it turns out bigger than you imagine doesn't make you a bad investor.

[Jawhead999]

Each choice has their own advantage and disadvantage, so the big role in this matter is luck.

You can follow the classic business law, it's safe and you wouldn't lose big amount money because you're invest in carefully. But you're jealous with your friend because you know your friend invest in something based on his own instinct, but he's lucky since his investment went up for 10x multiply.

You wanted to try it, but you're unlucky and the shitcoin delisted from any centralized exchange.

[so98nn]

I attended a business seminar where a facilitator a renowned professor, and Entrepreneur shared a story on how he missed out on investing in a small fintech start two years ago which as at today is worth $500 million. He said the team had approached him to make an a investment in the start but because he did not understand how the were going to make money since he didn't invest the $100k he wanted to write them. Today, he would have been $7.5million richer had he invested.
 
They say do not invest in what you do not understand which was largely the principle the speaker adhered to but what if despite not immediately understanding the business model and its profit making model yet your business instinct pushing you to invest. What should you do? Listen to the former or follow your instincts?

I think we should follow both the facts while investing our money. There is no harm in researching the business, calculating all the risks involved in it, and further making decisions based on the instincts we have about it. The market is full of new opportunities and you never know what fintech would touch the sky in a short period of time. Considering today's fast-growing era of digitalization things are even faster than we imagine. The market research and advertising of these services has outgrown and they can take any business to proper clients in a very short period of time. They could generate insane leads turning into a potential business and thus making any business grow to huge potential. This type of study must be done when it comes to start-up investments. You can actually get a pretty awesome idea from their roadmap and then go for the gut feelings.

[bayu7adi]

Each choice has their own advantage and disadvantage, so the big role in this matter is luck.

The topmost tier in every decision-making process... is luck.

Fools will always lose to the intelligent,
While the intelligent will always lose to the fortunate.

Many believe that luck is solely the will of a higher power. However, in reality, by being knowledgeable and educated, our chances of becoming fortunate are also increased. Indeed, we cannot guarantee the arrival of luck, but with education and knowledge, we have at least expanded our possibilities of attaining such fortune.

[Sanitough]

I attended a business seminar where a facilitator a renowned professor, and Entrepreneur shared a story on how he missed out on investing in a small fintech start two years ago which as at today is worth $500 million. He said the team had approached him to make an a investment in the start but because he did not understand how the were going to make money since he didn't invest the $100k he wanted to write them. Today, he would have been $7.5million richer had he invested.
 
They say do not invest in what you do not understand which was largely the principle the speaker adhered to but what if despite not immediately understanding the business model and its profit making model yet your business instinct pushing you to invest. What should you do? Listen to the former or follow your instincts?

That’s always the rule before you decide to invest, know what you are investing for. Otherwise, you may only waste your money and efforts from believing in a scam project. However, if your instinct is pushing you to invest, then you can always invest with a small amount that you can afford to lose. That way, you will not be regretting your decision whether you win or lose, because you grab the chance thinking that it could be another missed opportunity if you let it slip again.

[tjtonmoy]

Listen to the former or follow your instincts?

Learn first about what you are trying to do. If you are unaware of something, it is always the best action to avoid it. If you know nothing about it or do not understand it, then how is your instinct going to work? Never stick to your past mistakes. It will only create regrets. Instead, learn from your mistakes, and find out what was the reason why you were unable to understand it. Learn about new things that might pop up in the future with better opportunities. It is not an overnight scheme that will increase your investment. Everything takes time. So, find the potential ones that you think will give you more in return.

Stuck in the past, you will lose your present and future. Business laws were not created in a single day. It came to us from a long time of experience with trial and error. If you failed to grab the opportunity in the past, maybe you lack something. Try to fix that and take yourself to the level where you won't have to lose any opportunity again. Following your instinct is always based on luck. The whole universe runs on rules, not one's instinct. So you need to understand that. The moment you take action based on your instinct, you are acting based on your emotions. Try to avoid that if you want success.

[Unbunplease]

Learn first about what you are trying to do. If you are unaware of something, it is always the best action to avoid it. If you know nothing about it or do not understand it, then how is your instinct going to work? Never stick to your past mistakes. It will only create regrets. Instead, learn from your mistakes, and find out what was the reason why you were unable to understand it. Learn about new things that might pop up in the future with better opportunities. It is not an overnight scheme that will increase your investment. Everything takes time. So, find the potential ones that you think will give you more in return.

Stuck in the past, you will lose your present and future. Business laws were not created in a single day. It came to us from a long time of experience with trial and error. If you failed to grab the opportunity in the past, maybe you lack something. Try to fix that and take yourself to the level where you won't have to lose any opportunity again. Following your instinct is always based on luck. The whole universe runs on rules, not one's instinct. So you need to understand that. The moment you take action based on your instinct, you are acting based on your emotions. Try to avoid that if you want success.

On the other hand, what is instinct? It may be what enables you to make the right decision. If you reject what your instinct tells you to do because of negative past experiences, you could be making a big mistake. The fear of repeating past mistakes will hang over you. It is worth considering that the laws of the universe do not always work.

[Die_empty]

They say do not invest in what you do not understand which was largely the principle the speaker adhered to but what if despite not immediately understanding the business model and its profit making model yet your business instinct pushing you to invest. What should you do? Listen to the former or follow your instincts?

Every form of investment is like gambling because the outcome of the business is not certain. Sometimes our instinct moves us to consider investing in a venture but we shouldn't forget that instinct could be wrong or right. My take is that you don't just follow you instinct immediately, there is a need to research and at least learn the basics of the investment. You need to know how the business runs and how it intends to make its profit. Except you have money to waste, we shouldn't invest blindly just because something in us stirs us up to do that.

To answer your question Op, I will not invest in any business based on instinct. I don't need to go to Havard or Yale to understand any business. Using my phone I can get all the information I need to about the business. There is no need for hasty decisions, there is always a need for learning and evaluation. I believe that opportunity will always come, so if I miss one another door will open.

[demonica]

There are times that this kind of scenario happens in our life. We experience having regrets with the missed opportunities we had. But that  is just part of life. That's why there are risk. If he invested, it's either it'll work out or not. If it was me, I would also doubt investing on something that isn't clear to me. Our instinct can be good but not all the time. It's understandable why he didn't invest on that company before since you said that he didn't know anything about it. But maybe, instead of regretting some of our missed opportunities, we should focus in present and the future. There are always new opportunities for us.

I won't ignore the "classic business law" that you're saying and at the same time, I will also take into consideration my instincts. If I'm going to make a decision similar to this, I'll weight things before deciding what to follow.

[inthelongrun]

For me, it is still very important to fully understand the stuff that we are going to invest in. It's our hard-earned money after all so we better spend it or invest it meticulously. Investing without understanding what really it is all about is already a sort of gambling and we do not want our investments to just depend on luck.

I would rather miss some opportunities because I still stick to my principles before investing. But there are always exceptions, of course, I can probably risk and follow my instincts but only with minimal amounts that won't hurt if in case it fails.  

[doomloop]

It might be a classic suggestion but its better than to invest on a thing that you don’t understand and I don’t see any business mind there because for me, its more about of your greed and thinking about making easy profit.

Why will you invest on a project that might hiding something from you? And the only way to know that is to have your own research instead of believing to any marketing campaign. Again, invest on your learning first and money will come later on.

I think both of them are the same and I see it as a wrong approach although if we get lucky we can still be able to earn. Maybe you don't see a business mind there but there are for those people who does that. In a mind of any business person, I think there is always a greed. They want to grow their business and build more branch because it allows them to earn more profit. This ain't easy. It takes time but it surely worth it.

It's normal that marketing can be misleading most of the times. People are already used to it. There is a saying that when something is too good to be true, it is likely a scam. We can follow this principle to save our time making a research about the project.

[TimeTeller]

It might be a classic suggestion but its better than to invest on a thing that you don’t understand and I don’t see any business mind there because for me, its more about of your greed and thinking about making easy profit.

Why will you invest on a project that might hiding something from you? And the only way to know that is to have your own research instead of believing to any marketing campaign. Again, invest on your learning first and money will come later on.

I think both of them are the same and I see it as a wrong approach although if we get lucky we can still be able to earn. Maybe you don't see a business mind there but there are for those people who does that. In a mind of any business person, I think there is always a greed. They want to grow their business and build more branch because it allows them to earn more profit. This ain't easy. It takes time but it surely worth it.

It's normal that marketing can be misleading most of the times. People are already used to it. There is a saying that when something is too good to be true, it is likely a scam. We can follow this principle to save our time making a research about the project.

But even if you are a businessman, it is always best to know what you are investing with.
Blindly spending your money is not advisable as you are putting yourself at a higher risk of losing your funds.
So for me, when it comes to spending money, follow your instincts, whether the outcome is positive or not,
at least, you can tell yourself that you have done your job and not because someone told you so.

[GeorgeJohn]

I will choose to only invest what I can afford to lose and the project that I really understand. Even though this is same like the classic business law you wrote above, but this is  pure of my decision and their words have nothing do with me.

Actually in investment what the investors need is to know the strength of the investment or platform before venturing into it, because scrutinising a platform is what that will make you as a good investors to be able to know exactly what's going on into the investment, I believe that investment of cryptocurrency is something the investors have to check it pockets before investing so that if they will be any lose it will not affect the financial strength of the investor, so it's good to invest what you can afford to invest  as you portray initially.

[ChiBitCTy]

You absolutely shouldn’t be investing in what you do not understand. For every singular story like this there’s a million where people invested their money in things that they didn’t understand in which backfired on them and lost considerable sums.

He made the right call. I often see clients investing in equities or debt instruments that they don’t understand and I’ll never understand what drives them to want to invest so blindly, other than greed and ignorance.

[Mpamaegbu]

They say do not invest in what you do not understand which was largely the principle the speaker adhered to but what if despite not immediately understanding the business model and its profit making model yet your business instinct pushing you to invest. What should you do? Listen to the former or follow your instincts?

His story, despite turning good for the fintech company, still didn't mean he should rue how he didn't take his chances and invested the $100k he would've done. He shouldn't regret it. Yes, I know businesses of all shades are not without risk but I would rather take a calculated risk than take a blind one which contradicts my investment principle. No doubt, the way the man in that story felt about missing out on that deal will be the same feeling for those who missed out on Bitcoin when it debuted.

[smile1218]

I attended a business seminar where a facilitator a renowned professor, and Entrepreneur shared a story on how he missed out on investing in a small fintech start two years ago which as at today is worth $500 million. He said the team had approached him to make an a investment in the start but because he did not understand how the were going to make money since he didn't invest the $100k he wanted to write them. Today, he would have been $7.5million richer had he invested.
 
They say do not invest in what you do not understand which was largely the principle the speaker adhered to but what if despite not immediately understanding the business model and its profit making model yet your business instinct pushing you to invest. What should you do? Listen to the former or follow your instincts?

For me you should follow your instincts. It is hard to invest if you are 100% not sure and if you cannot afford to loose what you are investing. I  know for sure that more people experienced that kind of missing out an investment, of course the regret could always be in the end. But what if he invested on an early stage then later on it went bankrupt, for sure he will also regret that. So better yet follow your instincts and make sure that the amount you will invest is what you can afford to loose. Also research first before investing to be able to know if it is a reliable or a scam project. At the end of the day your decision to invest will be depend on yourself. 

[dansus021]

They say do not invest in what you do not understand which was largely the principle the speaker adhered to but what if despite not immediately understanding the business model and its profit-making model yet your business instinct pushing you to invest. What should you do? Listen to the former or follow your instincts?

I heard a bunch of times like the word "Do not invest in what you do not understand" and in my opinion is good advice tho following our instinct is also a good idea to. If I am not following my instinct I would not be here in the cryptocurrency world.

Tho before invest learning is always in my opinion I mean we know nothing before and if we learn. We will understand.

[wxa7115]

They say do not invest in what you do not understand which was largely the principle the speaker adhered to but what if despite not immediately understanding the business model and its profit-making model yet your business instinct pushing you to invest. What should you do? Listen to the former or follow your instincts?

I heard a bunch of times like the word "Do not invest in what you do not understand" and in my opinion is good advice tho following our instinct is also a good idea to. If I am not following my instinct I would not be here in the cryptocurrency world.

Tho before invest learning is always in my opinion I mean we know nothing before and if we learn. We will understand.

The truth is that while advice like that is in fact useful to help you avoid making huge mistakes, an advice like that can also stop you from making a very good move which could change your life.

So a balance must be reached, most of the time we need to avoid investing in assets we do not understand, however if we see that a particular asset has tremendous potential then we can take the risk and invest in it, even if we do not fully understand it, as this could be the opportunity that we have been looking for to obtain massive profits.