What can equity investors learn from football?

Is your investment portfolio too reliant on one star player?

1 November 2018

In some ways, an investment manager is like a football manager – and some managers have more freedom of choice than others.

A manager of a single country portfolio is like a national coach taking a team to the World Cup - the choice is restricted to selecting the players eligible for that country.

Even with the world's biggest and best footballing superstar in one position, they are often forced to fill other positions with players regardless of talent - simply because they are the right nationality.

And in some positions they may have to make-do, or pick players that are past their peak.

On the other hand, a manager of a club like Real Madrid, is free to sign the best players in the world for each position, regardless of nationality. The club has a star-studded host of global ‘Galacticos’, such as current world player of the year Luka Modric, meaning there is always strong competition for places all over the field.

At no point are they forced to pick weaker players to fill positions purely on the grounds of nationality.

A global portfolio offers you the same opportunity.

Open interactive guide

What can equity investors learn from football?