Another common and highly irrational anchoring bias among investors occurs when they aim to buy a stock, which they expect to go up “hundreds of percentage points” over time, only at an arbitrarily fixed desired purchase price that is a bit lower than the current market price. These investors act penny wise and pound foolish and end up incurring huge opportunity costs in many cases (similar to those who defer a justified sale of a stock solely to make it a long-term holding and save some short-term capital gains tax). For the great majority of transactions, being stubborn about a tiny
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