The Cost of Doing Nothing

Written by Alana Smith

When patience is a strategy, and when it's an excuse.

Two people can make the exact same decision to do nothing. One is exercising discipline. The other is missing an opportunity.

From the outside, they look identical.

So what's the difference?

One has evaluated the risks, considered the alternatives, and intentionally decided that waiting is the best course of action. The other is waiting because making a decision feels uncomfortable.

And the longer that second person waits, the easier it becomes to call their hesitation patience.

That's an important distinction, particularly in business and investing.

We spend considerable time evaluating the risks of taking action. What could go wrong? What might we lose? What if the timing isn't right?

But how often do we apply that same scrutiny to the decision not to act?

Economists call this opportunity cost: the value of the next-best alternative we give up when making a choice.

And here's the part worth remembering: Doing nothing is still a decision. It just doesn't always feel like one.

When Waiting Becomes Expensive

In his 2016 letter to Amazon shareholders, Jeff Bezos described two types of decisions: one-way doors and two-way doors.

One-way doors are difficult to reverse and deserve careful consideration. Two-way doors are decisions we can test, evaluate, and adjust.

His point was that organizations often slow themselves down by treating reversible decisions as though they're permanent.

It's an idea worth applying beyond business.

How many opportunities have we postponed because we wanted more information, more certainty, or simply more time?

Sometimes that's exactly the right approach. Other times, we're waiting for a level of certainty that may never arrive.

In real estate, consider a hypothetical property generating $100,000 in annual net operating income. At an 8% capitalization rate, its implied value is $1.25 million.

If operational improvements increase annual NOI by $20,000, that same property could have an implied value of $1.5 million, assuming the capitalization rate remains unchanged.

That's a potential $250,000 increase in value, before accounting for improvement costs.

Now imagine those improvements were identified months ago, but the decision to pursue them keeps getting pushed back.

The opportunity hasn't necessarily disappeared. But every month of delay could represent income that wasn't earned and progress that wasn't made.

Not every opportunity deserves a yes. But every meaningful opportunity deserves a decision.

The Courage to Change Direction

Of course, making decisions doesn't mean stubbornly following a plan when the facts change.

Sometimes the smartest thing we can do is reconsider our approach.

Or, as Ross Geller famously shouted while moving a couch up a staircase in Friends:

"PIVOT! PIVOT!"

While we hope our business decisions involve slightly less shouting, the principle holds.

There's a difference between being committed to an outcome and being attached to the original plan.

Successful investors understand that changing direction isn't necessarily a sign of failure. Sometimes it's evidence that you've learned something important.

What Are You Waiting For?

As October comes to a close, it's tempting to start looking toward January.

A new year. A fresh start. Another opportunity to pursue the goals we haven't quite reached.

But consider this: There are still more than sixty days left in 2026.

Before you mentally check out and start making resolutions for January, ask yourself:

What opportunity have you been putting off because you're waiting for the perfect moment?

Maybe there's a good reason to wait. Or maybe you've gotten comfortable calling indecision patience.

Either way, November and December are still yours to do something with.

The calendar isn't holding you back. So what is?