Life will always offer opportunities. The ones you grab are the ones that will make the difference. We often quote it as the “What if” of the financial world.

“What if” I would have invested in energy stocks and not in the pharma ones. Opportunity costs means “What else could I have done with my money?” and “Am I properly allocating my capital?”

Per the very famous Warren Buffett. “The real cost of any purchase isn't the actual dollar cost. Rather, it's the opportunity cost—the value of the investment you didn't make, because you used your funds to buy something else.”

An opportunity gone is an opportunity missed. This is one learning that can be freely applied to all peripheries of life especially financial decision making. We all have that one friend that often fusses on how “If his father would have invested Rs1 lakh in Tata shares 18 years back today, he would have been sipping a pina colada in Mauritius and living off a luxury life on the mere dividend from such an investment”.

While such a thought is totally whimsical but what is not unreal is the loss that one incurs due to missing on such great investment opportunities. What one needs is being equipped with the right knowledge and the sheer armory to capitalize on such events in that very moment.

Quick Fact - Do you know while the entire market was on a wild goose chase during the Sensex crash of 2020 (COVID/Pandemic) and trying to find that one multi bagger stock that will give them 5x returns of their investment what no one or very little number of investors could identify were the Nifty and BSE Sensex that gave 100% returns in under 24 months. By the time investors could assess and identify the same the Sensex had already touched 60K and was on a downhill journey or the so-called camel hump.

What people lacked was not information, but continuous information backed by constant monitoring and real time recalibration of investment strategies.

So truth be spoken, your complaining friend was not so complaining after all.

Furthermore, with the advent of more complex assets classes like Non fungible tokens, Blockchains, commodities, fixed income products, debt products, government, and sovereign bonds the concept of opportunity cost just becomes a tad more COMPLEX.

With varying goals ranging from 6 months to 60 years the definition of “Opportunity Costs” has evolved dynamically. Your capital needs to be allocated to multiple goals and each of these goal journeys will either run sequentially, parallelly or will piggyback on each other. Meaning once a certain goal has captured all possible opportunities and is complete that tranche of capital should now submerge to further strengthen the journey of other goals.

We have an inhouse term for this called as “Goal Based Opportunity Cost”. Remember our definition of Opportunity cost is “Am I properly allocating my capital at all times?”.

While it's easier said than done in theory, imagine how complex will it be to deploy something in real life scenario. Through our signature AI & ML powered tool based on “Nobel prize winning” theories we empower your financial journey by not only capturing those winning opportunities but also assisting you in achieving your life goals.

We at Invest. Ai kill those “What If's”, through one investment at a time.