The Opportunity Cost of Risk-Seeking Behaviour

February Newsletter | What is the opportunity cost of risk-seeking behaviour? In Auscap’s February 2015 newsletter, we explore our perception of a common attitude towards risk – that in a person’s life cycle they should be more tolerant of risk when youthful to try and achieve higher returns because one can ride through periods of volatility. Our view is that risk-seeking behaviour is dangerous for any person, and in some ways we consider the risk of speculating to be far greater in many ways for the younger person than it is for the older person due to the opportunity cost of having not invested wisely.