Core Viewpoint - The article discusses the misconception of "low-price bias," which suggests that lower-priced stocks have greater upside potential compared to higher-priced stocks, emphasizing that price does not equate to value [1][2] Group 1: Behavioral Biases - Low-price bias is the belief that a low-priced stock is a better value and has greater upside potential simply due to its price, leading to misplaced expectations [1] - Money illusion bias refers to the failure to distinguish between nominal value and real value, where nominally equal amounts of money do not hold the same purchasing power over time due to inflation [1] - Both biases highlight the importance of understanding true value rather than being misled by stock prices [1][2] Group 2: Investment Examples - An example is provided comparing International Paper, trading at $38.64, and Nvidia, trading at an adjusted price of approximately $495.60 after a stock split, illustrating that price should not be the primary metric for investment decisions [1] - The returns from these investments show that International Paper yielded a cumulative return of about 34%, while Nvidia provided a return of roughly 259% over the same period, reinforcing the idea that valuation and growth potential are more critical than nominal price [1] Group 3: Importance of Understanding Biases - Recognizing and correcting cognitive biases is essential for investors, as it can lead to better investment decisions [2] - The article emphasizes that improving understanding is key to correcting cognitive biases, contrasting it with the difficulty of addressing emotional biases [2]