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Mike Brown argues that great investing requires knowing when to quit. Set measurable success metrics before you start, so you can exit objectively when something isn't working. Cutting losses fast protects your capital and builds real wealth.
Mike Brown argues that great investing requires knowing when to quit. Set measurable success metrics before you start, so you can exit objectively when something isn't working. Cutting losses fast protects your capital and builds real wealth.
The hallmark of a great investor is knowing when to cut losses. But from the time that we're kids, well-meaning parents, teachers, and coaches drill one thing into us: never quit. And I agree, success requires some level of tenacity and grit, and you've got to push through those hard times. However, if you go into any new endeavor, whether it be a new business, a new job, whatever it is, you should have a metric as what does success look like and how will I know if this is not working. If you have a predetermined exit strategy, especially when it comes to investments, That's going to help you minimize your losses, and that's how you create true wealth.
