5min chapter

Curious Minds at Work cover image

CM 225: Annie Duke on Knowing When to Quit

Curious Minds at Work

CHAPTER

The Most Consequential Bias That Stops Us From Quitting

The sunk cost fallacy is the feeling that whatever resources we've spent on something already should count for whether we continue to do something. The most poignant example of this actually comes from war so I was talking to General Tony Thomas who he told me about how incredibly heartbreaking it was when his Gold Star parents would say to him don't allow my child to have died in vain and what they meant by that is my child died  in vain because that means that my child will have die in vain. So sometimes the sunk cost is somebody's life that's been put into a conflict but if you were approaching the stock fresh today would it be one that you buy? You want to at any moment kind

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