When you're making a decision to buy a company's stock or not, how much do you weigh other potential investment opportunities in comparison to the company you're actually considering? Opportunity cost is something you always have to consider. I think that if I have an investment at 70% of my base case value, let's say, but I find an equally good company that's at 50, I would make the switch. The approach that managers use lowers their career risk or their client through a business risk; it doesn't actually produce the best return.

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