04-05-2014, 09:33 PM
Rolls, good observations. The 'sunk cost' conundrum is what makes most people make bad investment decisions across the board. What you paid for something has no bearing in what something is worth at any given time. Whether it's real estate, a stock or bond, or any other asset like a bike, a majority of people tend to want to 'get their money back' or 'not take a loss.' Consequentially, they discount what that money could do invested in something else and often hold on to a sinking asset. My local triumph dealer has a 2011 Sprint GT that is the original demo they got. They still have it priced near list. The sales manager keeps turning down offers because 'it cost me more than that.' That's his problem, not the buyer's.
Of course, all this goes out the window when we want a beautiful CB1100!
Of course, all this goes out the window when we want a beautiful CB1100!