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Opportunity Cost

Opportunity cost is what you give up by choosing one option instead of another.

Por que importa

Every investing decision has trade-offs, including the choice to stay in cash.

Exemplo simples

Keeping $10,000 in cash might feel safe, but you may miss years of compounding in the market.

Erros comuns

  • Comparing choices only by risk and not by missed potential return.
  • Ignoring inflation when leaving money idle.
  • Treating inaction as a neutral choice.

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