Oh, I think we all are victims of this fallacy from time to time. Nothing to be ashamed of.
True Story: I am on the investment committee for a nonprofit and the investment guy for the firm running the money has been reluctant to sell some donated Class A mutual funds because a big front-end load fee aka sunk cost was paid for them. The funds are dogs. After 6 months of waffling with us waiting for him to grasp the obvious, we finally just directed him to sell. He is a former CPA and has these initials on his bio: CFA, CFP, CPWA. I think he is really not too bright but has real talent for passing multiple choice tests.![]()
I was treasurer on BoD of a local charity.
One of the board members had a resume of Branch Manager at 2 of the big name brokerages plus starting up his own firm and several "Outstanding Advisor of the year" awards... He believed that since we were a "non-profit", we could not end the year with more money than we started with....
