Overview
Sunk Cost Fallacy: Staying in bad investments simply because money has already been spent on them. Overview Sunk Cost Fallacy : Staying in bad
: Investors often refuse to sell underperforming stocks because they have already invested significant capital, trying to justify past decisions. Mental Accounting you are investing on information.
Parag Parikh - FLAME Investment Lab (FIL) Speakers' Repository Overview Sunk Cost Fallacy : Staying in bad
He presented a study in the book comparing two groups:
The successful investor filters out the noise. If you check your portfolio prices every day, you are trading on noise. If you check it once a quarter, you are investing on information.