Glossary
Endowment effect
M6.04Also called endowment effect, ownership bias.
Valuing something more highly because you own it.
In investing it shows up as a reluctance to sell a holding you would not buy at today's price, and as a systematically more generous reading of news about companies in the portfolio.
The standard test is direct. Would you initiate this position today, at this size, at this price?
If the answer is no, you are holding it for the wrong reason.