I’ve been thinking a lot about the concept of an opportunity cost stock. I’m pretty sure the concept, as with so many things, comes from Buffett. I believe a decade ago he explicitly said that Wells Fargo was his opportunity cost for buying a new stock (i.e. for every opportunity he looked at, he weighed buying the new stock versus simply buying more Wells). I can’t find the exact source for him saying that, and I know it sounds crazy that Buffett once spoke so highly of Wells given
I can understand the idea behind opportunity cost and it makes sense in theory, but I think it's only one part of an investment decision for an investor. If you always thought this way, you would ultimately only buy one share because you thought it was the best and every other investment would lose out in comparison.
I LOVE coal as an investment. Low P/E, high divvies and/or share buybacks, minimal Capex needs, countries building coal-fired plants like crazy to fuel their EV fleets. My favorite Buffet investment of all time is See's Candies, which demonstrates both his flexibility and keen eye for value. Darn good product too.
I can understand the idea behind opportunity cost and it makes sense in theory, but I think it's only one part of an investment decision for an investor. If you always thought this way, you would ultimately only buy one share because you thought it was the best and every other investment would lose out in comparison.
I LOVE coal as an investment. Low P/E, high divvies and/or share buybacks, minimal Capex needs, countries building coal-fired plants like crazy to fuel their EV fleets. My favorite Buffet investment of all time is See's Candies, which demonstrates both his flexibility and keen eye for value. Darn good product too.
Awesome post, in every line.