MichaelAaron Flicker

that humans have a tendency to continue investing simply because they've already done that before.

And we call it the sunk cost fallacy because it's not necessarily rational.

It's not necessarily logical.

And so because I have an inclination to match my past behavior,

If I've already started investing in one type of investment, I want to continue to see that through.

I've already started down that path.

I want to see how it does.

I've already made a $100 investment.

Even if it loses a little, I've already got my $100 in.

I want to see what it does.

That fallacy that just because I've put something in, I have a first on cost, drives a lot of future actions.

And there's actually some fascinating academic studies on this.

There's a lot to choose from.

I'll just pick one that's really interesting.

This is a study from 1985.

It's Arx and Blummer.

And they give a thought experiment to a group of people.

Let's say on one hand, you're looking for a ski trip for your family.

And you go and you spy a $100 ticket to a Wisconsin ski weekend.

And you're set, you're excited, and that's going to be a very good ski weekend.