Triage is the prioritization of treatment to patients based on the assessed severity of each patient’s situation.
For it to work, an understanding of the criticality of each patient’s condition must be made, because that prioritization is the thin line between life and death.
The interesting thing is that medical personnel are trained to avoid sunk cost in their approach to this prioritization.
Those that are assessed to have a low likelihood of survival, are to put it lightly, left to die. Some palliative might be provided if available, without taking the time of the medical personnel.
Where it is not clear from observation who is more likely to survive, age is used for prioritization. The younger you are, the higher you are on the priority.
This is a complex process and is heavily subjective, but you need to understand the thought pattern – Give attention to the people that stand a better chance of survival, not necessarily the people with the loudest cry.
I take that same approach with investments.
There is no use throwing money into an investment that is just bleeding cash without end, just because I have held that investment the longest or because it offers great bragging rights. If the investment is perceived by me (sometimes wrongly) to have a low likelihood of long term survival and returns, I either trade it in and cut my losses or I just stop all cash from moving in that direction.
I pay attention to investments that have the best chance of survival and long term returns. I feed such investments with cash and track progress periodically.
Like I said, sometimes, I am wrong. Some investments I have put cash in, have turned sour in the long term, and some investments I starved, have had turnarounds. When I am wrong, it is a learning opportunity. I take my “L” and apply the overlooked variables in future decision making.
But the logic is simple – Give attention to the investments that stand a better chance of survival, not necessarily the investments with the loudest cry.
– Osasu Oviawe