I was just thinking about investing in shares, which has some similarities like regular shopping. Both of them look to get the most value for one’s money, involve an upfront cost for possible future benefit and also, too deep discounts make us question their quality. The last point is the one that I’m going to highlight in this post.

(Image source: https://commons.wikimedia.org/wiki/File:Portones_Shopping_Mall.png)

If we suddenly saw the price of groceries selling at half price, we are likely to think that they are about to expire soon (or maybe already have). For clothes at a designer store, the clothes at a discount are likely to be from the last season or if they are in a factory outlet, may have some defect. When we see things selling at a discount to their original price we usually think that they have “lost” something that makes them less valuable.

This aspect …