Sunk cost bias prevents rational investing: people value a stock they bought at $100 (now worth $80) based on the purchase price rather than future prospects, causing them to hold losing positions longer than warranted.
causalpending
Speaker
Dan ArielyEvidence Quote
“you bought this stock at 100 it's now down to 80. you're not thinking of it as something that you bought at 80 you think about it something that you bought at 100 and it's now down at 80.”
Source
The Many Ways Our Irrational Minds Sabotage Our Wealth | Dan Ariely, Behavioral Economist— WealthionCreated: 8/12/2026, 6:45:07 PM
My Notes
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