When Price Doesn't Matter
I occasionally view things differently than my wife, for which I take full responsibility and repent the error of my ways. For example, I do not fully appreciate a good bargain. When my wife buys an item for $50 that was originally $300, I do not share her enthusiasm, although I express my pleasure at her good fortune. To me, either the item was worth $50 or it wasn't -- it's previous price is irrelevant.
With investments, the purchase price can get in your way of clear analysis. Let's say you bought the XYZ stock a few months ago for $100 per share and it now trades at $70. Should you sell it? Well, there are numerous factors that go into such a decision. Does it make a difference that you bought the stock for $100 per share? Absolutely not!