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How ownership affects valuation, and a simple test
Published by The Retail Trader · AUG 02, 2026 · Trading Psychology
Your opinion about the same stock changes once it enters your portfolio. This is documented human behaviour, and it directly costs you in portfolio reviews.
We value what we own more highly. That is why we are unwilling to part with our own holding for what we would pay for it.
In a portfolio this shows up as arguments for your own stocks coming easily, while arguments against them feel weak.
This question brings the bias to the surface immediately:
• If I did not hold this position today, would I buy it at today's price?
• If the answer is no, then holding is a new decision — and that decision must be justified.
• Ask what I would buy today instead.
• This review should be done on every position once a year.
The most honest review of a portfolio is one in which you rebuild it from a blank page. For any name that does not appear in that new list, at least one question is raised.
This article is for education only — it is not a buy or sell recommendation, makes no claim of a guaranteed return, and is not advisory. Rules, rates and mechanics are changed from time to time by the exchanges, SEBI and RBI, so verify every number yourself with your broker or the official source.