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Showing posts with label Opportunity cost. Show all posts
Showing posts with label Opportunity cost. Show all posts
Friday, 1 February 2019

This is opportunity cost at its finest action.

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PROBABILITY OF VALUE REALIZATION What do you do if there are multiple bargains at the same time ? How do you distinguish which ones ...
Sunday, 6 December 2015

Investment Decisions and Fundamentals of Value

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Investment Decision Rules: Accept all investments with Net Present Value greater than Zero. Accept all investments with Rates of Ret...
Friday, 27 November 2015

Capital Management in Personal Finance

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A simple equation in finance describes your approach to capital management: Assets = Debt + Equity Everything you own was funded either ...
Sunday, 7 April 2013

Investment Decisions and Fundamentals of Value

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@ 6.47 min Managers should invest in real assets and should not be involved in investing in financial assets which the shareholders can d...
Friday, 17 February 2012

Ways to Limit Opportunity Cost - Most Important is holding Part of your Portfolio in Cash

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The most important determinant of whether investors will incur opportunity cost is whether or not part of their portfolios is held in cas...

If you are buying sound value at a discount, do short-term price fluctuations matter?

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In the long run , they do not matter much; value will ultimately be reflected in the price of a security.   Indeed, ironically, the long-...
Saturday, 29 May 2010

The Time Value of Money

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"A bird in hand (today) is worth two in the bush (tomorrow)." Everyone would rather have a dollar in his or her pocket today tha...
Wednesday, 16 December 2009

What Was Your Worst Investment Mistake in 2009?

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What Was Your Worst Investment Mistake in 2009? By Dan Caplinger December 15, 2009 In 2008, nearly everybody made bad investments. By co...
Sunday, 18 October 2009

Opportunity costs of our investments

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"There is this company in an emerging market that was presented to Warren. His response was, 'I don't feel more comfortable buy...
Sunday, 13 September 2009

The Power of Avoiding Losses

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Losses occur for three primary reasons: 1. You took bigger risks and exposed yourself to a higher probability of loss . 2. You invested in ...

Understanding Buffett's frugal convictions

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Warren Buffett once joked that he spent 6% of his net worth buying his wife Susie an engagement ring, thus depriving himself of immeasurable...

Opportunity costs of our investments

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Every dollar spent on a single item is a dollar unavailable for other items. That dollar must provide a suitable return - measured against w...

Look at all spending decisions as opportunities - won or lost

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Most individuals these days are astute enough to understand the power of time and understand the need to fund their own retirement rather th...

Columbus's four voyages to the Caribbean

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The Joys of Compounding In Buffett's annual report to partners for the year ending in 1962, he broke cadence from his routine review of ...

Letting money compound productively creates an enormous economic benefit.

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Postulating the value of assets into the future holds meaning for investors who, if they're fortunate, can live many decades. Letting mo...

Let time work to your advantage

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Choosing good companies at fair prices seldom has produced losses for investors willing to wait patiently for the stock price to track the g...

If the Indians wanted to buy back Manhattan

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There's the story that, if the Indians wanted to buy back Manhattan, they would have had to pay more than $2.5 trillion by January 1, 20...

The Power of Compounding

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No force exerts more influence on your portfolio than time. Time takes a bigger toll on your terminal wealth than do taxes, inflation and p...

Lost Opportunities

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A poorly chosen stock may cost you only $2,000 in losses today, but over time that one suspect decision could cost $50,000 in lost opportuni...
Wednesday, 8 July 2009

Opportunity Cost and Opportunity Lost

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A value investor's mind operates in a continuous buzz, deciding whether an investment is achieving its best possible returns or whether...