rightattitudes.com
5 ideas
·1.83K reads
14
Learn more about moneyandinvestments with this collection
The impact of opportunity cost on personal and professional life
Evaluating the benefits and drawbacks of different choices
Understanding the concept of opportunity cost
“Opportunity cost is a huge filter in life. If you’ve got two suitors who are really eager to have you and one is way the hell better than the other, you do not have to spend much time with the other. And that’s the way we filter out buying opportunities.”
30
495 reads
33
429 reads
When mulling over multiple choices, the quality of any option cannot be assessed in isolation from its alternatives. The price you pay (or the sacrifice you make, or the benefits you give up) for doing what you’ve chosen to do instead of doing something else is the opportunity cost.
In sum, an opportunity cost is the cost of passing up the opportunities that a different option would have afforded.
Many costs are calculated in terms of money. However, just because you don’t have to spend money to do something does not imply that the options you face are without their costs.
There’s an opportunity cost to even reading this, at this moment. You could have been watching TV, taking a nap, calling up a friend, or moving on to another article in the time you’re devoting to reading this article.
In a nutshell, even decisions that appear to be no-brainers carry the hidden costs of the options you will decline.
30
294 reads
“The right way to make decisions in practical life is based on your opportunity cost. When you get married, you have to choose the best spouse you can find that will have you. The rest of life is the same damn way.”
30
321 reads
38
294 reads
The cost of something is what you will give up to get it. This is opportunity cost.
“
More like this
5 ideas
Charlie Munger: Mental Models for the Rest of Your Life (PART 4)
The Swedish Investor
7 ideas
6 ideas
Charlie Munger: Mental Models for the Rest of Your Life (PART 3)
The Swedish Investor
Read & Learn
20x Faster
without
deepstash
with
deepstash
with
deepstash
Access to 200,000+ ideas
—
Access to the mobile app
—
Unlimited idea saving & library
—
—
Unlimited history
—
—
Unlimited listening to ideas
—
—
Downloading & offline access
—
—
Personalized recommendations
—
—
Supercharge your mind with one idea per day
Enter your email and spend 1 minute every day to learn something new.
I agree to receive email updates