The Wolves missed a chance to go five points clear on top of the Bundesliga, and Magath was left ruing the opportunities his players wasted after the Cottbus loss.
"We wasted some great chances today and that’s why we lost the game," the former German international said.
"Cottbus put on a good, battling performance today, whilst our young side appeared inhibited. We weren’t as compact as we had been in recent weeks."
Bosnian Zvjezdan Misimovic agreed with his coach that Wolfsburg attackers lost their magic touch against Cottbus.
"In recent times we didn’t need all that many chances to score goals. This time around we didn’t take the chances we made. Maybe it was a defeat at the right time," the Bosnian stated.
Wolfsburg are looking to make history by winning the Bundesliga title, which will be their first since the club's establishment in 1945.
Magath's men are leading the hot race for this year's title with 57 points, two ahead of second-placed Hertha Berlin and three more than Bayern Munich and Hamburg, who are third and fourth respectively.