Save your portfolio from Sunk Cost fallacy

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Published Jan 3, 2024

Ever finished a meal even that you didn’t like only because you had paid for it? Do you continue investing in a stock despite it not showing any improvement?
Well, both are examples of Sunk-Cost fallacy, a phenomenon resulting in huge losses for an investor.

Remember, you shouldn’t put all your eggs in one basket! In this video, we will decode the psychology behind the sunk cost fallacy, how it messes with our decisions, and how to avoid getting caught in this trap.

00:00 Let's begin
01:48 How governments too fall for sunk cost/concord fallacy
02:35 Why we keep investing in falling companies
03:33 Why you keep pursuing a degree you don't like?
04:33 How Prateek sir fell for sunk cost fallacy
05:42 How to get out of sunk cost trap
11:52 Bloopers