28 Jun Irrational Investor
The Irrational Investor
Apple owes much of its success to Steve Jobs’s understanding that the way a product makes users “feel” is the most important consideration; more important than even “price”.
If Steve Jobs had seen people as rational beings, he might have followed a path similar to Dell, selling highly capable machines at the lowest possible price.
Dell succeeded too, of course, but if buyers were rational, there would have been only one computer manufacturer left after about a year; consumers would always buy the best computer for the money and drive out the bad players overnight.
Jobs’s view of people being more irrational than one tends to believe led him to a business model with high margins, whereas Windows computers have become commodities.
As a Financial Advisor never live under the illusion that people will not pay for an Advisor’s service.
Remember people will pay if they see value in you.
So the question to ask isn’t whether investors will pay or not because people aren’t rational.
The question that you need to ask is whether your investor will pay you or not.
Our opinions don’t matter. Only introspection and corrective actions matter.
Little things like the way you talk, the way you dress, the way your work place looks, the way you engage with your investors, the way you educate, the way you design your marketing material, the way your office employees dress and behave etc etc usually matter more than the returns your advice generates.
This may seem strange, absurd etc but like it or not this is the cardinal truth.