Ignore this Classic Business Law or Follow Your Instincts?

[Yogee]

[....] 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?

Just because you miss 1 or 2 that could have worked doesn't mean you'll forget what's been an effective method 8 out of 10 times. It's okay to deviate from the strategies you usually follow but let's be realistic and think of how much are we talking about here. If this business that's unknown to you is asking a significant amount of money then you're probably not going to invest in it. If it's something that's not really going to affect your wealth as if you're only buying a lottery ticket then you'll likely go for it.

[libert19]

Following instinct is wiser, however usually human minds are so muddled we often do not recognize them.

[lienfaye]

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?

In the past, I failed many times on my investing journey and that's because I follow my instinct that this is the right thing to do, I am closer to succeed if I chose this etc. that all keeps lingering in my mind. But only time can tell if you made the right decision, obviously in my case it turned out bad because i'm too confident. So for me, it would be better to understand first the investment before making a decision to invest.

There might be people who gain fortune by following their instinct. But not all are lucky to have such fate. It's either you will got lucky or regret not taking time to understand everything before taking a risk.

[Synchronice]

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 do not invest if you don't understand is good and bad advice at the same time. A lot of people have invested in bitcoin without understanding what it is but they all have succeeded. Definitely, Bitcoin is an innovation and there is just no chance to miss profit by investing in it, that really was the case back in 2016. But I agree with that one, it's never bad to truly understand what you are investing in but one should never miss opportunities like Bitcoin and Ethereum had and still have.

It's really hard to give away really beneficial advice because future is so unpredictable. I would really be upset if someone has told me to not invest in Bitcoin because I don't know what it actually is. Sometimes instincts win.

[Ucy]

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?

Actually modern education makes people dumb, unproductive and slaves to the system's industries.
To do well, it's better to discover what you are gifted or talented in and have successful people who share similar talents to guide/refine you. But before this, consume the Word of the CREATOR of the Universe... learn basic maths, language, civics, morality, health and other necessary/important knowledge. They are what we call general knowledge for all or most people/talents.
The basic education tend to be somewhat fair, natural and useful. If you wish to go beyond the basics, look for successful people in your related field/talent and those knowledgeable in the above subjects to guide you, or get the books they have written to guide you.

What you call instinct are basically natural knowledge and talents. They are what society ought to build on and refine. Passing through modern school with high scores doesn't mean you will know how to solve world's problem properly. Infact people with great scores from such schools will need to rely on their natural knowledge to do well in society. Knowledge they obtain from the schools will certainly fail them because they are false Knowledge. The knowledge is actually light quencher capable of making smart people dumb and foolish.


There are rare cases where knowledge is "supernaturally" obtained or uploaded in a human or taught by his CREATOR in the mind and spirit. These can only be possible via contact with the CREATOR.

[Minor Miner]

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 do not invest if you don't understand is good and bad advice at the same time. A lot of people have invested in bitcoin without understanding what it is but they all have succeeded. Definitely, Bitcoin is an innovation and there is just no chance to miss profit by investing in it, that really was the case back in 2016. But I agree with that one, it's never bad to truly understand what you are investing in but one should never miss opportunities like Bitcoin and Ethereum had and still have.

It's really hard to give away really beneficial advice because future is so unpredictable. I would really be upset if someone has told me to not invest in Bitcoin because I don't know what it actually is. Sometimes instincts win.

I don't consider that bad advice. People who invest in bitcoin but don't understand what it is, but they all succeed because luck chose them. And are you sure that luck will come to you? Meanwhile, the people who are dumping bitcoin and losing money investing in it mostly don't understand bitcoin, and do you think instinct is helping them or making them worse? Even if we are knowledgeable, there is no guarantee that we will succeed when investing in bitcoin, let alone that we have no knowledge and just instinctively invest.

[dansus021]

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.

Yes Indeed It must be balanced

After all nowadays looking for information is easy. and learn about investment is everywhere literally everywhere from social media like youtube Instagram or TikTok to blog post and book the information is public or we can pay an expert to take an investment lesson.

Or just like me invest in both way  classic investment like stock and mutual fund and modern investment like cryptocurrency

[Pierre 2]

I never trust my instincts when it comes to classic investment schemes. Yeah when you think about some business seems profitable, and you are informed, you will be generally proven right. But human factor should always be considered within these investment possibilities. Ideas may sound right but people may have bad intentions, or they may be just lazy ones, or they may not be good at handling issues (if happens). 100k usd is something very big for me, I would not blindly invest it.

[Desscount]

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.

Yes Indeed It must be balanced

After all nowadays looking for information is easy. and learn about investment is everywhere literally everywhere from social media like youtube Instagram or TikTok to blog post and book the information is public or we can pay an expert to take an investment lesson.

Or just like me invest in both way  classic investment like stock and mutual fund and modern investment like cryptocurrency

With the internet we can find and access information more easily,
it's just how we really want to learn or not because it all depends on ourselves,
there are many platforms that we can use so there is no excuse.

[Fortify]

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?

It feels like people go through many different stages and evolutions of their business knowledge. When I first got into investing many years ago, it felt very hard to focus on specific things I should be looking at when evaluating a business and it was so easy to get deluged by the vast amounts of information on display. However you learn over time what to look at and develop your own strategy, it helps in speeding up your decision making process. It's definitely better to avoid situations that are time sensitive and you feel pressured into an investment that you're not confident in.

[South Park]

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?

It feels like people go through many different stages and evolutions of their business knowledge. When I first got into investing many years ago, it felt very hard to focus on specific things I should be looking at when evaluating a business and it was so easy to get deluged by the vast amounts of information on display. However you learn over time what to look at and develop your own strategy, it helps in speeding up your decision making process. It's definitely better to avoid situations that are time sensitive and you feel pressured into an investment that you're not confident in.

This happens on almost every field of knowledge, at the beginning I had a lot of problems to tell when a project was a scam, however as time went by and I learned more about this market my skills in that regard increased as well, which is what allows me to see that almost all of the coins being created every single day are scams, something which discouraged me and that eventually led me to stop being interested in the altcoin market.

[justdimin]

It feels like people go through many different stages and evolutions of their business knowledge. When I first got into investing many years ago, it felt very hard to focus on specific things I should be looking at when evaluating a business and it was so easy to get deluged by the vast amounts of information on display. However you learn over time what to look at and develop your own strategy, it helps in speeding up your decision making process. It's definitely better to avoid situations that are time sensitive and you feel pressured into an investment that you're not confident in.

That is the reason why most of the big trading companies have analysts, because they rather have all the information they need brought down to a few stuff so that they would know if they should buy something or not.

There are thousands of lines of work to read on stocks, and not everyone can constantly keep reading that, so instead of having 500 people  constantly reading something, they have 100 traders and 1000 analysts that helps them, that way it's more efficient and they can constantly check what's going on and trade accordingly. Not all of them are like that, but major ones do have that type of employee. Hell even law firms have paralegals for example to help them go through stuff, that makes the job a lot easier. We are all alone, it's harder for us.

[slapper]

It feels like people go through many different stages and evolutions of their business knowledge. When I first got into investing many years ago, it felt very hard to focus on specific things I should be looking at when evaluating a business and it was so easy to get deluged by the vast amounts of information on display. However you learn over time what to look at and develop your own strategy, it helps in speeding up your decision making process. It's definitely better to avoid situations that are time sensitive and you feel pressured into an investment that you're not confident in.

That is the reason why most of the big trading companies have analysts, because they rather have all the information they need brought down to a few stuff so that they would know if they should buy something or not.

There are thousands of lines of work to read on stocks, and not everyone can constantly keep reading that, so instead of having 500 people  constantly reading something, they have 100 traders and 1000 analysts that helps them, that way it's more efficient and they can constantly check what's going on and trade accordingly. Not all of them are like that, but major ones do have that type of employee. Hell even law firms have paralegals for example to help them go through stuff, that makes the job a lot easier. We are all alone, it's harder for us.

The concept of "division of labour" is central to contemporary economic structures. Why spread your efforts thin when you can concentrate them like a laser beam and accomplish more? Analysts condense data into actionable insights that empower traders to do what they do best: trade. However, one must bear in mind that the mere presence of facts and analysis does not ensure sound judgement. Knowing when something is important is the skill. It's kind of like when you watch the whole game instead of just the highlights. Don't forget the value of a tailored newsfeed and other information sources in your solo travels. You could perhaps locate your online 'analyst' in this age of unprecedented global connectivity. It won't be simple, but it's not impossible, either

[Mahanton]

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?

Really hard to make up choices if ever there's a situation which those inside voices or instinct would really kicked in. You would really be having that boggled mind on the time that this situation comes.
We are talking not a small amount of money to be invested and this is the main reason on what we do mind that its not something that we could just easily grant or invest into something without doing that actual research.
Of course we would really be trying out to follow on whats on the books about those preparations and other factor checking and if those things are on checklist then you might considered but if not?
But still you do miss out that big opportunity for you to make yourself rich or make profits on how many folds then it would really be living out that kind of regret which is something

that you cant really forget for the rest of your life. You might forgotten it but it would be temporary and you would really be keeping on coming back on telling that you should have invested on that time
but well past is past and there's no way that we could return the time.

[serjent05]

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 would follow the advice of not investing on something that I do not understand.  It is more likely that I will lose money than earn one. Besides it is a common approach to know what we are getting into, reason why there is always advice to research thoroughly before investing.  Whether it is the concept or trust in the developer's capability, we must know all the information about the whole project, which includes the goal and plans and the people behind the project.

[SmartGold01]

First as an investor if such businesses or a start project that has no feature approaches them to invest, well, if they planned of investing with the sum of $100k as you said, it would be better for person to half the money maybe using around 10 to 20 percent to gamble with that business having the mindset that whatever may happened but let it no be as if he is left behind.
Taking bold step to risk $100k and then decided to gamble with $20k since he doesn't know about the business model and concept is fair enough for a starter, so as individual or major investors who knows what would likely happened to any startup project will at least risk some little percentage of money to invest in that project without waiting for the project to make a big name first.

[Darker45]

I believe the options are not only limited to avoiding what you don't understand and following your instinct. If you are in doubt over something you don't understand, is there no way to resolve that doubt before making any decision?

In the example by OP, is it not possible for the professor to request for an overview of what the project is all about? After all, he's been approached to invest. Those who approached him will probably be more than willing to explain to him in details what the business is.

In addition, he could always do some research. He could consult certain people who have the knowledge about fintech.

[xSkylarx]

This is hard because that is huge money, and you should be cautious because, for sure, you are investing in a company that is sure to profit. That situation is rare because not all the time those start-up companies will be that big unless they have a really promising company that has its own uniqueness. The problem with that is that he is only basing his decision on its model and plans, which for sure indicate that the start-up company is still struggling, but if he looks at the bigger picture, like whether the company is promising, then for sure he could give it a try.

[yhiaali3]

I do not risk what I do not understand, but at the same time I listen to people whose expertise and experiences I trust. Perhaps I do not understand this work, but I have a friend whom I trust and whose advice I can listen to.

It is not necessary for a person to understand all areas of investment, there are many things that we do not know, so we must listen to others who we trust.

There are many opportunities in life, and sometimes opportunities come from places we never expect, so we have to be alert to take advantage of these opportunities when they come.

[Joshapat]

Life is always a mystery, in business of course it is ridiculous if we put money in a place we don't know, it doesn't matter if we lose the opportunity to become millionaires because we miss a business offer, the reverse story of course also often happens when someone is grateful not to invest in an investment that ended up being a scam so he was able to save millions of dollars.