HITSERIES®︎|Opportunity Cost

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Opportunity Cost

Opportunity cost is the potential benefit or profit that an investor foregoes when choosing one investment option over another. It’s the cost of forgoing the next best alternative. In other words, it’s what you could have earned if you had invested your resources differently. Opportunity cost is a critical concept in decision-making, as it helps investors weigh the benefits of different investment choices and consider the trade-offs involved.

Decision Making Bias

We cannot be too careful to avoid decision making bias. We can’t eliminate bug in decision making process.