No, somebody who makes bad investment decisions destroys value. It is bad for the overall economy.
Of course the price for this the investor has to bear, and sometimes others can profitate if the investor pays them too much or sells too cheap. But if you add up all value created/lost in whole process then bad investment always destroy value while good investment generates value
Of course the price for this the investor has to bear, and sometimes others can profitate if the investor pays them too much or sells too cheap. But if you add up all value created/lost in whole process then bad investment always destroy value while good investment generates value
Suppose Person A has land for sale for $30. Person B buys it for $100, even though it only has a market value of $50. Person B tries to resell this property at $120, fails, and ends up marking it down until it finally resells at $40 to Person C.
No money was lost to the economy. All that ends up happening is that Person A gets a windfall, Person C gets a windfall by purchasing property at below market value, and Person B loses a bunch of money.