Whether it’s business or family investments, putting a stop to unending losses is a smart move. When I first married, my new family asked me for business advice during a family summer vacation. Up to that point we were such good friends.
They had invested in real estate in a high market and were stuck with low rents and a significant cash loss every month and even more losses if they sold in the down market.
I had three glasses of wine that evening and told them what I would do. Ouch. No one liked the math and thought even less of me for pointing it out.
The good news is that they are a kind people, and after some months of agonizing and repeating my simple math exercises they began to see the wisdom of paying now to end the forever bleeding of their lower than mortgage payment rents every month.
The sooner we accept that a mistake has been made, the sooner losses can stop and our egos and checkbooks be mended. I’ve worked with companies protecting inventors / founders egos, with what amounts to delusional thinking about shifting markets, illusive profits, and outright craziness to continue a financial bloodletting until some poor dumb sap has a third glass of wine and spills the beans.
Do you have another point of view or story to share?