1.5.6
Why do we value things more once they become ours?
Imagine you own something worth $50
Someone offers you $60 for it
Instead of thinking:
“Would I buy this for $60?”
you think:
“But it's mine”
That's the endowment effect.
Ownership changes our perception of valuea nd money can make this dangerous
You buy a coin at $1 - It falls to $0.60.
Now selling it feels like you're giving something away
So you hold
Not because the investment still makes sense - but because letting go feels like a loss
Sometimes the hardest thing to sell isn't an asset
It's our ATTACHMENT to it!
~ Think before you act
Why do we value things more once they become ours?
Imagine you own something worth $50
Someone offers you $60 for it
Instead of thinking:
“Would I buy this for $60?”
you think:
“But it's mine”
That's the endowment effect.
Ownership changes our perception of valuea nd money can make this dangerous
You buy a coin at $1 - It falls to $0.60.
Now selling it feels like you're giving something away
So you hold
Not because the investment still makes sense - but because letting go feels like a loss
Sometimes the hardest thing to sell isn't an asset
It's our ATTACHMENT to it!
~ Think before you act
