The strategy, "Utilising Football Metaphors to Manage an Investment Portfolio," employs football metaphors to create a balance between growth and stability in investments. It suggests treating high-growth stocks like star forwards and dividend-paying stocks as defenders to ensure stability. This strategy emphasizes diversification across sectors, akin to having a varied team line-up of tech and healthcare stocks. Regular reviews, akin to team huddles, and global economic awareness, like monitoring worldwide soccer tournaments, are recommended.
The strategy also advises choosing strong economies, like US and India, using metrics like ROE and PE ratios as evaluation tools. Monitoring geopolitics for market opportunities mirrors watching game strategies. The approach involves team-based decision-making, with structured discussions akin to daily team meetings to analyze stocks through financial statements, technical charts, and screener tools, ensuring holistic analysis and informed choices.
The strategies
⛳️ Strategy 1: Balance offensive and defensive plays
- Identify high-growth stocks like selecting star forwards
- Include dividend-paying stocks as defenders for stability
- Diversify investments across sectors like a varied team line-up
- Mix tech and healthcare stocks to spread risk
- Research management teams to find strong leaders as team captains
- Implement a rotational investment strategy similar to player rotations
- Regularly review portfolio performance with team huddle simulations
- Apply the Executive-Investment Coach (EIC) top-down approach
- Conduct macroeconomic analysis like assessing the playing field
- Stay informed on global economic trends like watching global soccer tournaments
⛳️ Strategy 2: Choose strong economies and companies
- Select portfolios spread across promising economies like US and India
- Identify stocks based on their economic growth potential
- Focus on companies with growing capital per worker
- Measure steady capital-output ratios over time
- Evaluate ROE figures, prioritising those above 30%
- Choose companies based on PE and PB ratios fitting desired criteria
- Consider monetary policy impacts on sectors like banking and finance
- Incorporate valuation factors across multiple categories
- Assess investor sentiment for market timing
- Monitor geopolitics to exploit industry-specific opportunities
⛳️ Strategy 3: Engage in team-based decision-making
- Conduct daily team meetings to discuss and deliberate over options
- Utilise a structured ideation phase for stock selection input
- Allocate roles within the team for sector-based research
- Select top competitors of the chosen stocks for analysis
- Analyse financial statements and ratios for decision making
- Use technical chart trends for short-term investment forecasts
- Utilise a custom screener for long-term investment options
- Discuss and resolve conflicting opinions during team meetings
- Simulate portfolio testing through various economic scenarios
- Define a clear process from industry selection to stock segregation
Bringing accountability to your strategy
It's one thing to have a plan, it's another to stick to it. We hope that the examples above will help you get started with your own strategy, but we also know that it's easy to get lost in the day-to-day effort.
That's why we built Tability: to help you track your progress, keep your team aligned, and make sure you're always moving in the right direction.
Give it a try and see how it can help you bring accountability to your strategy.
