Anchoring bias can benefit decision making as it can help us make reasonable estimates based on limited information. However, it can also lead to significant mistakes. When we rely too heavily on one piece of information, it restricts our ability to think logically and consider other aspects that need to be considered. For example, stock market investors may become fixated on short term fluctuations and anchor their expectations to the current price. However, a bad business will always produce bad returns in the long-run.