This week’s video starts with legendary bank robber Willie Sutton’s famous line about why he robbed banks:

“Because that’s where the money is.”

Oddly enough…that same logic often applies to investing.

This week, we discuss one of the most overlooked risks in investing: opportunity cost — a concept Charlie Munger frequently emphasized throughout his career alongside Warren Buffett.

Sometimes the biggest mistake isn’t what you bought…
It’s what you didn’t buy.

For example:
If you owned both Apple and Disney over the past 20 years, Apple returned roughly 3x more than Disney. At some point, investors have to ask:

Why continue owning the slower horse?

We also examine how many investors dramatically underperformed in early 2024 simply by avoiding leadership areas like AI and technology. In some cases, portfolios lagged the market by roughly 26%.

This week’s video explores:
• Opportunity cost and portfolio drag
• Why holding laggards can quietly hurt long-term returns
• The importance of identifying market leadership
• Lessons from Charlie Munger on concentration and conviction
• Why avoiding AI and tech in 2024 came with a real price

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Disclaimer: This content is for educational and informational purposes only and should not be considered investment advice or a recommendation to buy or sell any security. Investing involves risk, including loss of principal. Advisory services offered through BF/Anderson & Co.