White Elephant
Candlefocus EditorThe term "white elephant" was originally derived from Southeast Asian cultures in Thailand, Burma, and Laos. In those countries, white elephants are held in the highest regard, with some even treated as a member of the royal family, lavishly bathed and groomed. In modern Thailand, the term "white elephant" represents wealth and prosperity, and is often used to wish someone good luck and fortune.
In America and other western countries, the term has taken on a different meaning. Instead of symbolizing luck, it is used to describe an investment that wastes resources without providing much in return. Examples include investments in large real estate projects that require expensive maintenance, or investments in new technology or products that fail to find a market or large customer base.
The concept can be used to describe anything from failed business decisions and failed government programs to unprofitable investments in the stock market or real estate. It implies a heavy, burdensome asset that was once perceived to have great promise, but now no longer delivers any returns.
White elephants have become a warning to avoid unnecessary expenses and investments that may not yield any returns. Investors, business owners, and governments have become cautious of any potentially white elephant investments, and tend to avoid any investments that seem to share the same characteristics as a white elephant. For example, businesses may avoid large real estate projects or high-cost proprietary technology, while investors are more likely to opt for safer, proven investments.
By understanding the symbolism of white elephants, individuals and organizations can work to reduce their chances of costly miscalculations. This could mean avoiding unproven technologies or ambitious projects in favor of more tried and true, profitable investments. In this way, businesses can ensure that their investments remain profitable and stay in line with their goals.