Why Your Brain Won't Let You Cut Losses on a Bad Investment

In this episode of The Money Mindset Podcast, Lucas and Luna explore the sunk cost fallacy — why our brains refuse to abandon a losing investment even when it's the rational move. Using the 2014 collapse of the Canadian dollar as a case study, Lucas explains how loss aversion and commitment bias trap investors in bad decisions. Luna pushes back with a personal story about holding onto a stock for 18 months past its peak. They discuss practical strategies to override the fallacy, including pre-commitment rules and separating ego from portfolio. The episode also covers why Warren Buffett's approach to cutting losses differs from a typical retail investor's. If you've ever held a stock or a project too long just because you'd already put time or money into it, this one's for you. #SunkCostFallacy #BehavioralFinance #LossAversion #InvestingPsychology #MoneyMistakes #DecisionFatigue #WarrenBuffett #CanadianDollar #OilPrices #CommitmentBias #RationalInvesting #StopLoss #Finance #FexingoBusiness #BusinessPodcast #TheMoneyMindset #PsychologyOfMoney #CognitiveBiases Keep every episode free: buymeacoffee.com/fexingo