One of the main risks associated with so-called “passion investing” is in its name—the high level of adoration and emotion involved, which sometimes takes the place of rational decision-making.
James Haithwaite, a classic car specialist and director at First Names Group, tells of one collector who had his heart set on a classic Mercedes-Benz Roadster and was set to throw down $1.5 million without an inspection—largely because he liked the colour (green).
