Its hard for me be believe that people with a lot of money whose only job in life is to figure out how not to lose it do not do their research. There has to be deeper reason.
I have a friend who is a successful business person and know some others - none in the finance industry.
These are just observations from a tiny sample size. First I am surprised that none understand the finance industry; understandable since they were too buzy building a business to worry about anything but cashflow. More importantly is that I think they all suffer from a cogitative bias - they all ignore survivorship bias and believe they can beat the "system" which makes them susceptible to slick finance sales pitches. That sounds a bit cruel - i don't mean it to be; the same attitude got them to where they are.
I have a friend who is a successful business person and know some others - none in the finance industry.
These are just observations from a tiny sample size. First I am surprised that none understand the finance industry; understandable since they were too buzy building a business to worry about anything but cashflow. More importantly is that I think they all suffer from a cogitative bias - they all ignore survivorship bias and believe they can beat the "system" which makes them susceptible to slick finance sales pitches. That sounds a bit cruel - i don't mean it to be; the same attitude got them to where they are.