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Opportunity Cost - Should Investors Pay Attention?

  • Anup Bansal
  • Jun 2 2014
Estimated reading time: 4 minutes 17 seconds

"Opportunity Cost" of a choice is the value of the best alternative forgone in order to pursue a certain action. In other words, it is the cost incurred by not enjoying the benefit that would be had by taking the second or third etc. best choice available. The concept of opportunity cost comes into play because resources are limited. Resources can be either time or money or both. Often, when people say that they wasted time doing something, what they mean is that their time could have been better...

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