What the endowment effect causes — you value what you own more than what you don't

What a Veblen good is — a luxury good where higher price increases desirability

A Veblen good is a luxury item whose demand increases as its price rises, due to perceived exclusivity

What anchoring does in investing — the purchase price biases your sell decision

Anchoring bias causes investors to base sell decisions on initial purchase price rather than current market value

What the disposition effect causes — investors sell winners too early and hold losers too long

The disposition effect leads to premature selling of profitable investments and delayed selling of underperforming ones

What a Giffen good is — a good where demand increases as price increases (very rare)

Giffen good: Increased price leads to higher demand due to inferior necessity

What Buffett means by a company's moat — sustainable competitive advantage

Buffett's "moat" refers to a company's sustainable competitive advantage protecting it from rivals

What Buffett looks for in management — integrity, intelligence, and energy

Buffett values management integrity, intelligence, and energy for long-term success