"Think about these effects the next time you’re considering a particular company. If you already hold stock in that company, you may actually impute a higher value than is warranted, simply because you already own the shares. You are likely to enter a meeting with company management expecting to be convinced that any concerns you had are misplaced. Of course, management will never tell you anything other than it is a great business and a great investment. Some very successful fund managers never see companies for this very reason.
Rather than walking into the meeting in a sceptical frame of mind thinking ‘unless I hear something that really alters my view then I will sell this stock’, we tend to look for all the information that agrees with our stance, which, when we already own a stock, is likely to be, “I’ll keep holding this stock.”"
I’ll keep holding this stock!
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