We often overlook the financial concept of “opportunity costs” because there is no immediate cash expenditure involved. Typically, we invest more time and effort in purchasing cheaper products. In contrast, wealthy individuals do not have to exert as much effort as those with fewer financial resources. When we factor in opportunity costs, we often find ourselves spending a similar amount of money on the same items, regardless of wealth status. For instance, if Bill Gates picks up a dollar that someone has dropped, he actually detracts from his financial standing due to the opportunity costs associated with the value of his labor. In this regard, he might save more money by choosing to rest instead of working. Ultimately, opportunity costs are the hidden expenses that can keep us in financial distress in the real world. - Joseph’s “just my thoughts”
One of the most important essentials of business is cognitive dissonance resolution. When researching who watches the Ford Motor Company commercials the most, the results are not potential customers but purchased customers. They want to confirm that their decisions were right or to receive continuous support after their purchases. Because we can never go back to the past, getting confirmation and support from someone makes us easy and comfortable beyond our regrets. So the company's strategy should focus on repurchasing the existing customers, not the new ones. In many business cases, businessmen should avoid assumptions or predictions. We shouldn't run a business depending on our thoughts only. - Joseph's "just my thoughts