Shots of Wit

A regular posting of witticisms, aphorisms, and general musings by Clifford Cohen.

Investing…

Never invest in any scheme that is based on a metaphor, or anything with the word, “next”, in it (e.g., “this kid is the next Elvis Presley”, “this will be the Lake Lucerne of the Southwest”). You will lose your shirt.

Back Story

If the salesman/saleswoman in front of you is using either of these two techniques to sway you to buy or invest in something, run—don’t walk—for the exit. Why? For the simple reason that the use of a metaphor, or comparison to what has gone before, is manipulative: it is a time honored technique for getting a prospective buyer to suspend critical thinking—a way of imparting “veracity through association” with an object that is generally assumed to be representative of some type of “success”. This technique is used when the seller desires to discourage critical examination of the substance of the investment or product.

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