The Risks of Investing in Unfamiliar Businesses Unveiled

Max Forster, a prominent figure in the Australian business world, learned a tough lesson about the perils of investing in unfamiliar industries with his foray into the film business. The Australian movie Trojan Worriers, where he was Executive Producer, turned out to be a commercial disaster. The film’s failure underscored the risks of venturing into areas where one lacks expertise or control. Forster later reflected that the loss taught him the importance of sticking to industries he understood deeply and could influence directly, rather than chasing ventures based on their perceived glamour or potential windfall.