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Opportunity costs in stocks market
By Rainbow Coin  •  March 5, 2018
When we speak of making profits through stocks investing and trying not to lose money according to Buffet's rule, there is a part of the processes which we may overlook. That is - are we able to minimize opportunity costs throughout our investment journey? Here are some ways in which one may incur opportunity costs and potentially made our faces look like this >> TT (when we look in retrospective). 1) Sitting on too much cash in a bull market This is a total opposite of FOMO (fear of missing out). I can think of two possible reasons for sitting on cash - one predicts that a bear may strike soon (fear of losing) or one is not sure which stocks to buy. These cash on hand sort of erode away in value with inflation (ooh the scary term) as the bull market charges, losing out on capital gains and dividend yields. War chest under-utilised... Not to mention those friends in the DCA ......
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By Rainbow Coin
I began exploring the financial world in year 2010, hoping to get out of the rat race and be financially independent. 2010 was the aftermath period of the Lehman crisis when a pretty shaken up market was struggling to recover. On hindsight, that was the perfect time to catch multi-bagger stocks should I be a veteran or at least had some basic knowledge of picking up 'gems'. My learning curve was steep then, as I have absolutely no friends or relative who could shed some light on what's investing about.
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