Reference points and preferred conclusions distort analysis.
| Concept | Explanation | |---|---| | Anchoring | Relying too heavily on a reference point such as purchase price, prior high, or analyst target. | | Confirmation bias | Seeking information that supports an existing view and discounting contrary evidence. | | Selective interpretation | Treating ambiguous facts as support for the preferred conclusion. | | Thesis drift | Changing the reason for holding an asset after the original thesis fails. | | Debiasing | Writing invalidation criteria before entering a position. |