Opportunity cost is often overlooked because (IMO) typical investors are not knowledgeable of the different opportunities, they don't have the interest or discipline to inform themselves, and they don't have the risk tolerance (or the financial wherewithal) to take advantage of some opportunities. For example, a house is typically a worse investment than other opportunities, however it comes with the included discipline of monthly mortgage payments (for most people) and controlled risk (the lender forces reasonable insurance, etc.)
lingenfr5 karma
Opportunity cost is often overlooked because (IMO) typical investors are not knowledgeable of the different opportunities, they don't have the interest or discipline to inform themselves, and they don't have the risk tolerance (or the financial wherewithal) to take advantage of some opportunities. For example, a house is typically a worse investment than other opportunities, however it comes with the included discipline of monthly mortgage payments (for most people) and controlled risk (the lender forces reasonable insurance, etc.)
View HistoryShare Link