Published in the San Diego Union-Tribune, September 9, 2024
by Neil Senturia
Why it is so hard to make good decisions? By good, let’s agree that we mean rational, acting in our own best self-interests. I don’t mean being selfish; I simply want to avoid stupidity.
A client comes to see me. Her puzzle is simple. She signed a contract and feels that the other side treated her badly. This is not unique. Except, after I review everything, my conclusion is that she does not have a leg to stand on, she should settle as quickly as possible and get out of Dodge before they ask for their money back.
When I go through the analysis, she agrees. But why was it so hard to see that answer six months ago, instead of running up more than $100,000 in legal fees? You can always find a lawyer, an advocate who, for a fee, will take your side. I felt bad for her.
It is so easy to get confused, to believe the righteousness of your cause.
I have another friend, not a client, who ran up a few hundred thousand in legal fees, sure he would win. And then had to settle with the other side, getting 10 cents on the dollar. As for settling the legal fees, well that is another matter.
I am not immune. I made a deal to build a small water feature at my house. A good price. You know what is coming next. It got built, it doesn’t work, the design was flawed.
The solution is simple — rip it out and start again with a competent contractor. What was that about the “good price?”I am often asked to invest in a business. I get told that it is a slam dunk, no-brainer, fabulous opportunity. I ask the promoter, “How did I get so lucky to get this call?” It is not like I have a set of pictures of the guy with a donkey. Or am I No. 129 on the sucker list?
Many of us hang on the phone just a little bit longer to hear the scheme. I know it is a scam, but I am compelled to listen anyway. I know not to click that link, but the cursor hovers for a moment. Why do we do this? You think maybe, by mistake, you won the lottery.
A hundred articles about seniors being scammed. There is no explaining this. No, Betty, your grandson is not being held in a Botswana prison and if you just send me $5,000, I can get him on the next flight home. She doesn’t have a grandson, but she listens.
Stock market advice. You know those seminars — “We are going to tell you something Wall Street doesn’t want you to know.” You think maybe someone from Goldman Sachs could just buy a ticket and listen?
The government wants to legislate artificial intelligence. It does not have a clue, but it wants to set some rules. Hello, unintended consequences. Sam Altman, CEO of OpenAI, when asked how AI actually works, said “It’s magic.”
Wall Street Journal article on Gen Z wealth says it is higher than ever. Why? They bought a house. Any house, anywhere, any time before 2020, and magic happens.
Financial literacy? “Compound interest is the eighth wonder of the world,” Albert Einstein. Do not need Harvard MBA.
A guy comes to see me, wants me to invest. Pre-money valuation is crazy, but I keep listening. Looking for the pony. Then I get the bone-crusher. He says, “I love this company; it is my life’s work. I am never selling it.”
Hey, wait a minute, you just asked me to invest, so I’m curious — how exactly do I get my money back? Do I have to wait for you to die?
There are currently at least 10,000 mental health/wellness apps available for download. So who is the crazy one here?
Maybe global warming affects the brain. I do this every day for a living and I never cease to be amazed by my own, as well as others, stupidity.
My next company is going to be a biotech, you inject once and you lose weight, marry the right person the first time, and smile at the world with humility and gratitude.
Rule No. 822: But will my health insurance pay for it?