Ignore this Classic Business Law or Follow Your Instincts?

[Casdinyard]

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?

The thing is this quote is heavily butchered and tattered at least in my opinion. For me it's "Do not invest on what you do not know, but always leave some for risk tolerance". Sometimes and I mean this cause this has happened one too many times in the past, the most in-the-dark and unknown ventures are the ones that bring you the most profits. And if no one ever took risk in this industry there'd be no successful people at all. So while it's always smart to do your research and understand the ins-and-outs of the business venture you're being told of, it's sometimes much more essential to actually just take the bait and wish for the best. Fortune favors the brave after all, so why always chicken out and cover it with "I didn't know how they'd make money".


I'm not saying you should stop thinking at all when making business and financial decisions. Just saying that sometimes, you gotta leave something to chance.

[TheGreatPython]

If we are accustomed to business, it can be said that the theory in building a business is almost useless, with deep experience, we can more easily manage the business, unfortunately many people are afraid to start the business for fear of losing or bankrupt.

It's a good thing to have that fear because if you don't, you will waste a lot of money by trying a bunch of different businesses without putting proper effort and working hard on a single venture, when you have yourself involved in almost everything, you will most likely get success in none of them, the best way is to start a single business and keep working on that, if you know you have enough resources and can work hard on your business, it will become successful eventually.

People who have no fear of losing or going bankrupt tend to waste a lot of money which they shouldn't, you can always see, only the businessmen who have their hands in a single industry are successful in that particular business, but those who try having more and more businesses tend to get less success in comparison to them.

[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?

The thing is this quote is heavily butchered and tattered at least in my opinion. For me it's "Do not invest on what you do not know, but always leave some for risk tolerance". Sometimes and I mean this cause this has happened one too many times in the past, the most in-the-dark and unknown ventures are the ones that bring you the most profits. And if no one ever took risk in this industry there'd be no successful people at all. So while it's always smart to do your research and understand the ins-and-outs of the business venture you're being told of, it's sometimes much more essential to actually just take the bait and wish for the best. Fortune favors the brave after all, so why always chicken out and cover it with "I didn't know how they'd make money".


I'm not saying you should stop thinking at all when making business and financial decisions. Just saying that sometimes, you gotta leave something to chance.

I think the same, taking the safest path is a good choice for those that want to avoid risk at all cost, but by doing that you will be denying yourself the possibility of getting the big profits every single investor is looking for, now there is a very thin line between a calculated risk and a dumb one, however we need to always do our best effort in order to distinguish both, and bitcoin is a good example of this, years ago many people were against the idea of investing in bitcoin, and only once it demonstrated again and again that it was a good investment they changed their minds, however while they waited they lost the opportunity to invest on the best asset at ridiculous low prices.

[dothebeats]

In doing a business of course, we must know how to do the business, even though we already know that doing business in that case will definitely be profitable but we don't know how so never to join first, then first look for seniors and ask how to invest in the business if we already understand then we spend capital to invest, Because not all investments will always be profitable and some can also get losses if we don't know how to do something needed, so if I listen more to the thoughts of others who are experienced and rarely follow instincts.

It is true that taking advice from those with relative experience will surely help in establishing a business and ensuring that it will do good and profitable. However, I also believe that there are instances that we can use our instincts. Sometimes there are situations that requires for us to read the situation and follow what we feel. For example, it taking advice, it is better if we at least touch on our instinct if we can trust the person that is giving an advice to us or not since following something with a negative feeling will surely result to an unsatisfying feeling.

[Gadei Blang Gapu]

I think what the Keynote speaker said was true. my assumption. He juxtaposed with experience, data and facts that he had seen and noticed. yes. it takes courage to know how to make money and be ready to lose in the first cluster if indeed our intention is total. Combine the two. To ignore the Classical Business Laws, of course not, but pairing it with our investment instincts feels better.