I attended a business seminar where a facilitator a renowned professor, and Entrepreneur shared a story on how he missed out on investing in a small fintech start two years ago which as at today is worth $500 million. He said the team had approached him to make an a investment in the start but because he did not understand how the were going to make money since he didn't invest the $100k he wanted to write them. Today, he would have been $7.5million richer had he invested.
They say do not invest in what you do not understand which was largely the principle the speaker adhered to but what if despite not immediately understanding the business model and its profit making model yet your business instinct pushing you to invest. What should you do? Listen to the former or follow your instincts?
Sometimes it's true but don't completely trust your instincts because it's not completely true and you have to trust it, so I think there should be a balance between instinct and also some knowledge before investing.
if you only rely on instinct in investing then it's the same as we just hope for luck, the success rate will be very small so I think it's better to balance it.