Anchoring Bias
A specific application of the broader anchoring heuristic in investing contexts: the tendency to fixate on a reference price (the entry price, a 52-week high, a round number) and let that anchor distort current decisions. The cost-basis anchor is the most damaging variant — your entry price is sunk and analytically irrelevant to today's decision, yet most investors implicitly hold losers longer because they "want to get back to break-even" and sell winners earlier because they "want to lock in the gain." The defense is to ask whether you would initiate the position today at today's price with today's evidence, and act on that answer rather than the anchor.
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Active Management · Active Share · AI Revenue · Cost of Capital · Creation Unit · Days to Cover
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