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 …