Comments on: Opportunity Cost Analysis http://www.millionaireacts.com/1564/opportunity-cost-analysis.html Escape the Rat Race and Join My Journey to Financial Freedom Wed, 08 Feb 2012 05:13:04 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Tyrone http://www.millionaireacts.com/1564/opportunity-cost-analysis.html#comment-4696 Tyrone Sun, 13 Sep 2009 07:15:46 +0000 http://www.millionaireacts.com/?p=1564#comment-4696 Nice insights you have here Zen! You went into detail about opportunity cost of not only investing from one type of investment into another but you concentrated more on the stock market per se. It's true that when we educate ourselves more, the more we can choose the best option when presented with opportunities. And in this way, we can minimize the "cost". Nice insights you have here Zen! You went into detail about opportunity cost of not only investing from one type of investment into another but you concentrated more on the stock market per se.

It’s true that when we educate ourselves more, the more we can choose the best option when presented with opportunities. And in this way, we can minimize the “cost”.

]]> By: Zen http://www.millionaireacts.com/1564/opportunity-cost-analysis.html#comment-4692 Zen Sun, 13 Sep 2009 04:44:54 +0000 http://www.millionaireacts.com/?p=1564#comment-4692 Tyrone, to complete the opportunity cost analysis, i think we should add in another key figure: reward. In your case, you chose to put money in the bank because u think u would have lose more money in stock. Your cost is the potential gain from stock market gain. But your reward is probably less quantifiable, probably something like peace of mind, more time to write blog instead of watching stock market, etc. For me there are many opportunity cost involving purely switching stock in stock market, and end up riding on a slower moving train. This could be seen as opportunity cost now but then as i think back about it, i wouldn't know the right decision to make given my knowledge that time. I call this unknown opportunity cost, simply because at that moment you were probably making the decision u thought was right. However as time goes by, experience accumulated, we will be much better in evaluation this so-called opportunity cost Tyrone, to complete the opportunity cost analysis, i think we should add in another key figure: reward. In your case, you chose to put money in the bank because u think u would have lose more money in stock. Your cost is the potential gain from stock market gain. But your reward is probably less quantifiable, probably something like peace of mind, more time to write blog instead of watching stock market, etc.

For me there are many opportunity cost involving purely switching stock in stock market, and end up riding on a slower moving train. This could be seen as opportunity cost now but then as i think back about it, i wouldn’t know the right decision to make given my knowledge that time. I call this unknown opportunity cost, simply because at that moment you were probably making the decision u thought was right. However as time goes by, experience accumulated, we will be much better in evaluation this so-called opportunity cost

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