Dealing with Sunk Costs

ProfitSchool

Topics Covered In This Episode

• Understanding Sunk Costs: Mercer and Jeff delve into the concept of sunk costs and the sunk cost fallacy, sharing personal anecdotes and reflections on reframing mindsets to overcome this cognitive bias.
• Impact on Decision-making: They explore how sunk costs influence decision-making in both business and personal finance, emphasizing the importance of recognizing when to let go of unproductive ventures or investments.
• Opportunity Cost and Fresh Perspective: Mercer highlights the tension between persistence and adaptability, emphasizing the importance of embracing fresh perspectives and recognizing new opportunities, even if it means admitting past mistakes.
• Value of Coaching and Feedback: Both speakers discuss the value of coaching and feedback in gaining fresh insights and recognizing when it's time to pivot or let go of unproductive strategies or ventures.
• Adapting Marketing Strategies: Mercer shares anecdotes about adapting marketing strategies based on feedback and market dynamics, emphasizing the importance of mindset and openness to change.
• Investing Wisely: The discussion extends to investing strategies, with Mercer emphasizing the importance of emotional discipline and having a solid system in place to avoid making impulsive decisions based on fear or greed.

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