Most of my losing bets, in both business and investing, were driven by narrative reasoning: short compelling stories about the world that sound smart.
“Marijuana is about to be legalized in Canada. This is a rare opportunity to invest at the ground floor of a new industry.”
“I’m going to invest in a cobalt mining company because they won a contract with Tesla.”
Before we launched Spellbook, we thought: “Let’s launch Shopify for Lawyers, because hourly billing lawyers care more about getting business than efficiency”
