Investors’ prior experiences with a stock substantially affect their willingness to repurchase it. This paper explores the repurchase effect, a psychological bias in which investors are reluctant to repurchase stocks that have appreciated after a prior sale. To quantify this bias, we develop a novel stock-level measure, termed Repur, and investigate its implications for cross-sectional asset pricing. Our findings show that stocks with higher Repur tend to experience reduced future buying pressure from investors, which in turn results in lower subsequent returns. Economically, long-short portfolios based on Repur yield annualized abnormal returns exceeding 23% for equal-weighted and 11% for value-weighted risk-adjusted returns. Further analyses show that the pricing effect of Repur is more pronounced following periods of high investor sentiment, for stocks with greater arbitrage constraints, and for firms with smaller investor bases. Out-of-sample evidence from China confirms the significant pricing impact of the repurchase effect.