Charlie Munger put it this way

Charlie Munger put it this way: "Intelligent people make decisions based on opportunity costs it's your alternatives that matter. That's how we make all of our decisions."

— from Decisions & Choices (Decision/Choice/Focus/Forethought/Consequences) · Clear Thinking: The Art and Science of Making Better Decisions by Shane Parrish

In the book

The goal, in a word, is decisiveness: quick where you can be, deliberate where you must be. And one lens cuts through almost everything, the one Charlie Munger lived by: intelligent people decide by opportunity cost — it is always your alternatives that matter — so ask of any option, compared with what? and then what? — Decisions & Choices (Decision/Choice/Focus/Forethought/Consequences)

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