When we say something is a “no brainer,” we mean it is an easy decision to make. I have my own definition of no brainers, that being something that you should never do, and it should be an easy decision. But sometimes we do things we shouldn’t. Maybe it would be easier to explain my idea of no brainers by a few examples:
Picking Stocks
You should never pick stocks. Study after study has found that you will get a better return from buying a broad-based group of stocks, something like an EFT that reflects the S&P 500, than picking your own stocks and trying to time the market. But picking stocks seems to be almost irresistible to many people. It’s a no-brainer: buy a low-fee, broad-based EFT and then ignore it. If you want to pick stocks, just keep in mind your returns will be lower than otherwise and that it is worth the entertainment value to you.
Casino Gambling
This is an easy one, but then these are no-brainers, so they all should be easy. Don’t develop a habit of casino gambling. The house always wins in the long run. I hear about it when my wife wins and brings home a 1099 and I don’t hear about it when she loses, which is almost always. With my wife, we set a low dollar limit and consider it her ‘fun money.’ For me, losing money is not fun, but my wife is Asian, and it is in her DNA. Family courts have taken note of the rise of casino gambling addiction and the deleterious effect on marriages. It’s as bad as alcohol or drugs.
Angel Investing
Ah, what a sweet name: angel investing. Everybody wants to help the start-up with a great story and a dream. In come the family, friends and angel investors. That’s fine, but almost always, the return on investment will be zero. Let’s be real, these things virtually never work out. If you want to ‘invest’ in a start-up venture, consider it a gift, almost like charitable giving. Just don’t think of it as an investment. Your return is going to be approximately zilch point shit.
Trusting Untrustworthy People
My view on relationships is that all relationships are based on a foundation of trust. Now, one can have a relationship with a person that isn’t trustworthy. Maybe we don’t know the other person isn’t trustworthy. Or maybe we know the other person isn’t trustworthy, so we limit our relationship with the other person. For example, I have friends, not good friends, who are pathological liars. I know this and consider it whenever I speak with these people. I will never get involved seriously with such a person, I won’t do business with such a person, and I won’t loan someone like this money. But I can maintain a superficial friendship with a pathological liar.
How about a person who is untrustworthy for other reasons? Trust is something measured on a continuum. The more trustworthy the person, the deeper the relationship I think you can have with them. And the converse—the less trustworthy, the less you want to be involved with them.
Now how about a romantic relationship with an untrustworthy person? No way in the world. What if you get involved, or even married, with such a person. And then you discover they aren’t trustworthy? Time to break-up or head to divorce court. What if they promise to change? Keep in mind they’re untrustworthy…
It’s a no-brainer.
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