The $1.7 million trap started with a promise. A successful restaurateur, educated at Wharton, gave away her empire piece by piece. Not to a sophisticated con artist, but to an obvious fraudster who couldn’t even keep his story straight.
The gravitational pull of past investment
“The more we invest in something, the harder it becomes to abandon it.” – Daniel Kahneman
McKinsey research shows 85% of executives stay committed to failing projects long after evidence suggests they should quit. We’re hardwired to protect our investments, even when they’re clearly lost.
Beyond money: The identity cost
“The escalation of commitment to a failing course of action is one of the most robust and costly decision errors.” – Barry Staw, UC Berkeley
It’s not just about dollars. A 2019 Harvard Business Review study found that professionals stay in unfulfilling roles 61% longer when they’ve invested in specialized training or education.
Breaking Free
The Sunk Cost Fallacy isn’t just about bad investments. It’s about the stories we tell ourselves. That gym membership you never use. The degree program that no longer serves your goals. The relationship that drains your energy.
The next time you catch yourself saying “I’ve already invested so much,” ask instead: “If I were starting fresh today, would I make this same choice?” That decision may just unleash a whole new set of opportunities.
Your past investment isn’t a reason to keep investing. It’s just data..
