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  • Failure to handle psychological denial is a common way for people to go broke: you have made an enormous commitment to something. You have poured effort and money in. And the more you put in, the more that the whole consistency principle makes you think, "Now it has to work. If I put in just a little more, then it will work."

    "Business: What Lawyers Should Know". Charlie Munger's lecture to the students at the Stanford Law School in Stanford, California, March 13, 1998.