2 Very Common, Very Dangerous, Investment Misconceptions

A lot of smart people make terrible investments.

Even Sir Isaac Newton lost money buying near the very top of an early financial bubble.

In today’s article, I want to highlight two common investment misconceptions that many intelligent people fall for. Knowing about these financial fallacies allows you to identify and avoid them — saving yourself from unnecessary stress and hardship.

1. “This Company Owns A Big Building / Sports Stadium / Trophy Asset — It Must Be Legit”

Instagram gurus aren’t the only people who like to flex their wealth.

Many large corporations will buy “trophy assets” —like the tallest building in town, or naming rights to a sports stadium.

These are generally meant to showcase how powerful or successful a business is. But, trophy assets are often liabilities in disguise.

I don’t know about every sports stadium of golf sponsorship deal, but I do know a little bit about the Empire State Building, which I’m using as an example here.

The Empire State Building is one of the most famous and iconic buildings of all time.