Fail fast, fail cheap

The other day, I wrote a column about the new wave of ‘digital’ IPOs, saying that it’s better for bad businesses to fail quickly than to drag on for decades, sustained in the ICU of investor funds. Later, when I was thinking about the concept, I realised that this ‘fail fast’ formula also has an equivalent in personal investments. Here's an uncomfortable truth about investment advice: most people don't learn from it. They learn from experience, preferably painful experience. I've spent years writing columns explaining why derivatives trading is a losing proposition, why crypto speculation is madness and why loss-making IPOs are wealth destroyers. The response? People nod politely and then proceed to do exactly what I warned them against. Suggested read: The endless crypto hype This has led me to an unconventional conclusion. Perhaps instead of trying to prevent people from making investment mistakes, we should encourage them to make these mistakes ear