Identifying Anchoring Bias in Investment Decisions

During an investment meeting, Janet, a portfolio manager, is reviewing the performance of a stock that she purchased last year. Despite the stock's underperformance, she feels a strong emotional attachment to it because she had read a highly positive article about the company when she invested. This attachment has led her to continually hold the stock, hoping for a rebound, despite the objective data suggesting that the stock may not recover significantly in the near future.

This scenario illustrates a common cognitive error known as...