Often when I ask someone why they invest in a particular opportunity, I hear part of their thesis include that someone else also invested that is smart and accomplished. As someone who has lost a lot of money doing this, please hear my words, don’t do it.
Just because someone has been successful in their career does not mean they will make sound investment decisions for you. These “smart people” may not pay attention to the investment or be checked out. They might have biases or blind spots with the opportunity and management team. They might also be trying to save their skin because they are already in the deal. Never think someone’s opinion is more significant than yours just because they have had previous success. Do your own work and don’t trust the “smart guys” with your money.
