The Importance of Opportunity Cost

If you're an investor, you're looking at what the asset is going to do. We don't expect to make money if we are wrong about a business. With this attitude, you get a concentrated portfolio, which we don't mind. I would argue that one filter that's useful in investing is the simple idea of opportunity cost. And people who have very good opportunities and using a concept of opportunity cost, they can make better decisions than others.