The "prestige" trap in high-stakes investing
in Stocks ·
I’ve been thinking a lot lately about how much weight we put on certain names in the industry. It seems like there’s this unspoken rule that if someone is attached to high-profile, critically acclaimed projects, they must be legitimate. We see the big titles, the flashy credits, and we just assume the financial foundation is just as solid as the art they produce.
It’s a dangerous way to look at things, though. I learned that the hard way a few years ago when I followed a "sure thing" tip from someone who seemed incredibly well-connected in the creative circles. I didn't do my own due diligence because I was blinded by the sheer coolness of the portfolio they were managing. It turns out, a shiny resume can be the ultimate smokescreen for some really shady operations.
How do you guys vet people when they come highly recommended through "prestige" channels? Do you actually look at the numbers, or is it easy to get swept up in the hype of a big name?
It’s a dangerous way to look at things, though. I learned that the hard way a few years ago when I followed a "sure thing" tip from someone who seemed incredibly well-connected in the creative circles. I didn't do my own due diligence because I was blinded by the sheer coolness of the portfolio they were managing. It turns out, a shiny resume can be the ultimate smokescreen for some really shady operations.
How do you guys vet people when they come highly recommended through "prestige" channels? Do you actually look at the numbers, or is it easy to get swept up in the hype of a big name?