Focusing on an initial point of judgement to make decisions, while ignoring other incoming information. The problem arises when the point becomes irrelevant and causes unfavorable results. This is discerned from conservatism bias as anchoring is clinging to the original forecast, whereas conservatism is clinging to the given information that helped forming the idea. Investors tend to stick to the original investment strategy even when they are informed that the market is shifting.

Case in point: In a survey that asked about the proportion of African countries in the United Nations, the group presented with the question whether it is larger or smaller than 10%, and the other group with 65% had 20% difference in the average of the answers.