Tuesday, 12 March 2013

Today's Words of Investing Wisdom: Anchoring on the Past


On the behavioral-finance side, one of many inefficiencies comes from people anchoring on the past. People assume something is cheap, say, just because it hasn’t traded at such a low valuation for five or ten years. But that doesn’t matter, what matters is what will be.


Ric Dillon, 29 June 2007 (through Valueinvestorinsight.com)

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