FIFA World Cup Football returns. 32 teams vie for the title every four years. Russia hosts the World Cup this year and we are able to catch it at convenient times.
The World Cup football field measures approximately 360 feet in length and 200 feet wide. A team of 11 football players plays together. They are Goal Keeper, Defender, Defender, Mid-fielders, Forwards and Mid-fielders. Each position has different responsibilities and requires different skills. There is a strong correlation between the way football is played and how one ‘plays’ the stock market. Just like the stock market, the ball moves from one side of the field to another. The team must stop a goal at one end, while scoring a goal at the other is the goal. Just like stock investing, it is crucial to build the team and select the right player. It’s here where the similarities are most evident.
It is possible to draw analogies between how different players play different roles in a football team and identify stocks that could fill the same role within our portfolios. A football team cannot win without the Defenders, nor can they win without the Forwards. Both stock investing and football require a well-judicious combination.
Who are Forwards?
Forwards are aggressive, goal-scoring players who are not responsible for defense. Portfolio high growth companies can also increase their wealth faster (scoring more goals), but they don’t have to play defense, so they may lose money sometimes. These companies are usually small-cap businesses with a strong business model. The Forwards are responsible for scoring when the ball is closer to the opponent’s goal. This is because the economy and market is growing very quickly. Forwards are not allowed to play when the ball is in their half, i.e. market or economic conditions. They wait for the ball and move back to the centerline, where prices or performance have dropped.
Who is a Mid-Fielder?
The mid-fielders are able to pass the ball from defenders towards forwards, and they can also take over from their opponents. They are faster and have more stamina than the rest of the players, and they also run the fastest. Portfolio refers to companies that have a strong foundation (stamina), and are growing at an above-average rate (pace). They tend to be similar to Mid-fielders.
Who are the Defenders?
Defenders are those who defend their goal and prevent opponents scoring against them. They are responsible for stopping opponents from marching towards their goal. Once they have the ball, they move slowly until the forwards and mid-fielders are in place. Companies that are able to pay out high dividends and have steady earnings (not growing rapidly) year after year in difficult economic times can be considered defenders.
What is a GoalKeeper?
The goalkeeper is responsible for protecting the goalpost and preventing an opponent from scoring. He is often the only one who can prevent an opponent from scoring a goal. We need to protect our portfolio from loss in adverse market conditions by investing in assets that don’t have risk of value erosion, and which can be liquidated quickly without affecting the price.
All the funds and stocks mentioned above must be included in a portfolio. They will all help you achieve your financial goals.
To do this, we have created pages on our website. Only registered users have access to all stock ideas within each category. You can also choose players from different lists to see how your team performed over the past 8 years. This will help you learn what it takes for a portfolio that is well-diversified. Each company on the list has been carefully chosen to be a winner over the next few years. You can apply the wisdom of football and stock investing to create a strong portfolio.