despite working hard to earn money, most people still seek advice from family/friends in order to invest in stocks, real estate, Bitcoin etc... why do they rely on others?
It can be any of the following: 1- Too lazy to do the work (research) and make their OWN choice (accountability) 2- Ignorance: lacking technical abilities so they feel they have a mountain to climb and they need to make an action quickly 3- Family/friends: "oh we are the same tribe so surely s/he wants the best for me" "my friend is a CFO so surely he knows about investing" etc... such takes are dumb but unfortunately very relevant 4- Appearances: people believe in them, once they see BLING BLING they assume this person is successful so he knows a lot more than I do so let me ask for advice! ......
I can go on and on but it will be too long of a list
when people ask me "is it a good time to buy Bitcoin?" my response is always "Its a great time to study Bitcoin!" ..... if they are curious enough then ill just guide on best resources
What a coincidence. I am reading “The Tao of Warren Buffett” right now. It talks about how Warren Buffett has an independent mind, refusing to follow the herd mentality. I think most people feel the need to consult with their friends and family about their investing practices because they think that “there is safety in numbers”. After all, as the Japanese saying goes, “the nail that sticks out gets hammered down.”
Of course we all know that Warren Buffett made his riches by being greedy when others are fearful and being fearful when others are greedy. The importance of formulating a plan that is tailored to your needs and singing your own tune!
Absolutely!! we all learn from trial & error (some dont) and its even better to learn from others (like W Baffet) so you dont have to go through the pain yourself
time.
Well your listed reasons are okay but I think the major reason is just fear of the unknown.
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well said, I like how you think!
I guide them for self-education knowing this can be provocative for their brain as most people demand absolute clarity for their investment question (yes/no answer, good/bad time to invest)