Investments and soccer - Part II

A short time ago, in the midst of the global euphoria of the World Cup in Qatar, we wrote an article making an analogy between building a soccer team and building an investment portfolio.

In which we try to explain the importance of understanding that when we put together an investment portfolio, it should have different asset classes that, based on the different characteristics of each one of them, can allow us to build a solid vehicle that brings us closer to achieving our financial objectives in a more efficient way.

In the previous article we detailed that we need to build an investment portfolio, with a back to front approach, in which we mentioned that it coincided with building a soccer team starting with the goalkeeper and ending with the strikers. A priori, the latter tend to be the main protagonists, but beyond all the talent, if they are not well accompanied by the rest of the team they will not be able to achieve consistently positive results. Just to put in context, we could mention that without questioning the super human talent that Lionel Messi may have, if in the World Cup final he was not accompanied by a decisive goalkeeper, the result could have been different.

Goalkeeper: a fundamental position

In this case, we could say that a goalkeeper will not normally get the most attention, but it is paramount that he or she can sustain the team when things are not going well. This happens with the positions of a portfolio that probably get the least attention because of their role within a portfolio, but these are the same ones that will largely withstand the blows of the market and will allow the more dynamic positions to shine in the face of a change in trend.