Invest, Then Investigate

The phrase “invest, then investigate” is basically the financial equivalent of leaping before we look. It’s pretty much the exact opposite of what we’re supposed to do. It’s investing in something first, then doing our research on the investment after the deal is done.

Bananas, right? Why would anyone do this? So risky.

Well, some people might do it because they get a “feeling.” They know in their soul that this is the right investment to make, so they do it, no questions asked (or research done). And others might do it because they randomly hear about something, think it sounds great, and want to jump in with both feet before the opportunity passes. Still others might do it just because they’re thrill-seekers who really get a kick out of unnecessarily risking their money. Whatever the reason, we weren’t kidding when we said this approach is risky. Intuition and spontaneity are great and all, but we should probably not rely too heavily on either when it comes to our investment strategy.