When it comes to getting the best value for our hard-earned dollar most of us make some really stupid valuations. This interesting video from Business Insider looks at how people perceive the same bottle of wine tasting when it’s priced differently. Because most people really can’t taste the difference between two similar bottles of wine they use price as a means to gauge which one is better. It only makes sense that the more expensive wine must be the better wine so therefore that’s the one they chose. A value investor would recognize that they can’t tell the difference and buy the cheaper wine.
