Many Indians love cricket. Cricket is one of the most discussed topics in any group of Indian men. We surely can learn investing lessons from cricket. Time for fun, shall we begin?
There is a popular saying in cricket “No match is over till the last ball is bowled.” Go ahead, read and understand the statement before proceeding.
In case you are wondering if you read the title and the previous paragraphs right, here is a clarification. We are indeed talking about lessons from cricket that can be applied to investing. Some imperative investing lessons that cricket has to offer can be applied to investing too.
Be aware of the game you are playing
Cricket is played in various forms. Similarly, investing is done in time frames or horizons of time such as short term, midterm and long term. Short term goals can be completed by three years while midterm goals take 3 to 5 years to complete and long term goals take longer than 5 years for completion.
Build your team
Asset allocation and diversification is your team in investing. You might want to decide your risk appetite and move ahead with your investments. Having a good mixture of assets and diversifying them well (neither too much nor too less) will provide optimal results.
The captain is expected to bring out the best in his/her players. You, as a captain of your investments, have to estimate the circumstance, determine what method has to be implemented and take appropriate actions. This can be done if the captain knows his/her players well (their strengths and weaknesses).
Burdens have never been good
Save and invest regularly. Start doing this at the earliest. This is because delay puts pressure on you which make you put pressure on your investments. Putting pressure on your investments works like Karma, you suffer losses. Start investing responsibly as early as possible and continue investing regularly.
Take calculated risks
If you target a large score, you won’t blindly hit the ball in any direction. You plan, you check what has to be done. This is the same while investing. wealth creation and meeting financial goals take some amount of risk but you must take calculated risks.
Patience is a virtue
In general, in cricket and even in investing, patience truly is a virtue. Rome wasn’t built in a day. Don’t be hasty, remember the adage “Haste makes waste”.
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