In a week or so we will all be in the new tax year. Let’s take a look at how the last one played out for us as investors.
Although it has been 5 years or so since I watched a single game of football (no World Cup, no Euros, no Manchester United) I thought I would add a football theme to this performance blog. Like football, investment can be tedious at times and stretch our patience, but then there are moments of magic too. Let’s hope the current magic continues.
Football verses Soccer
Although I haven’t watched a game of soccer (US speak for football) I have watched many games of football (US speak for American football). If only the Yanks would speak English, it would make understanding much easier. Language difficulties are not just linked to sport. In investment we have shares they have stocks, we have gilts they have treasuries, we have bonds and they have….bonds. OK there are some similarities too.
I love the strategy behind football (I’ve started so I will stick with it), I like the concept that the two teams never meet. Unlike in soccer , where the same 11 players of the first team play the 11 players of the opposing team. Striker can tackle striker and defender can tackle defender. In football there are two teams and special teams too. Star quarterback never goes up against the opposing teams star quarterback. The offensive team is met by a defensive opposition, and vice versa. 11 players on, 11 players off when the tide turns. Talk about parking the bus, in football they bring on guys the size of a tranny van and then park a second set of vehicles behind that row.
Individual team members are chosen because;
- They can throw a ball, but not necessarily catch one well.
- Catch a ball, but probably couldn’t throw well.
- Run fast.
- Dodge.
- Block.
- Kick.
- Think.
- Be thoughtless.
There are parallels to be had in investing. Defensive shares versus growth shares for instance; there is a time in the game to choose one or the other or both. The list above is a proxy for asset allocation in investment. But I’ll be honest, I just love all of the football stats.
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