Take Charlie Munger's Advice - Know Your Opportunity Cost!

This week, I decided that it would be wise to once again read Poor Charlie's Almanack, a book released at the Berkshire Hathaway shareholder meeting detailing the wit and wisdom of the company's Vice Chairman, Charlie Munger. The multi-billionaire is a living, breathing walking didactic exercise in how one should live their life and, I would count myself lucky to end up as high a caliber man as he.

In one section, he says, "If you take the best text in economics by Mankiw, he says intelligent people make decisions based on opportunity costs - in other words, it's your alternatives that matter. That's how we make all of our decisions." That advice is key to choosing your investments and building your portfolio.