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15 Investment Lessons Learned Playing Fantasy Football


Many investing tips can be learned week to week on the fantasy gridiron.


8. Diversification – Unless the 49ers have a tremendous passing team, you probably will not do so well with their top two wide-receivers and tight-end every week. Spread it around a bit. The saying, "Don't put all your eggs in one basket" comes to mind.

9. Building a Portfolio – How do your stocks correlate? Who are they playing against? Will all your receivers be playing in cold, outdoor stadiums at the same time in December? Do you have holes when your stars players enter a bye week?

10. Randomness – These are lessons a textbook cannot teach. How do you explain the star quarterback that scored 300+ points in last year's league going down with a broken leg in the second week? We've all had investments that look great on paper, but for some unknown reason go very very bad – great lessons to learn, and the earlier the better.

11. Blue Chips – Just as there are so few blue chip stocks, there is a limited number of NFL stars. After about 15-25 players, you really need to do that homework. The trick is also identifying who's going to be the new blue chipper, and who's on the way out.

12. Recalculating – Throughout the season, how do you re-evaluate your players/stocks? Is there a "stop" point where enough is enough? What criteria are you using? Are you watching the waiver wire and digging into what other players/companies are available?

13. Buy What You Know – Peter Lynch's old adage of buying what you know seem so simple. But in today's investing world, it may be too simple. If you're a Jets fan, you don't pick five players from your own team because you know all the players – you may even have to force yourself to pick Tom Brady.

14. Herd Mentality – If you're doing fantasy football right, I'm going to guess you have to go against the grain a bit. If you are prone to picking the top 10 ranked players on, you may also be prone to picking from the "Top 10 Stocks" list. Those lists almost assure you that you'll have a tough go of it. You have to be able to make decisions independent of the herd.

15. Hype – There is always a company on a roll getting the star treatment. Media makes them seem invincible, and a self-fulfilling prophecy starts to occur. These may pay off in the short-term... but in the long-term, they are likely investing landmines. They are the trendy rookie quarterbacks named starters in week one that the pundits are gushing over -- but 17 weeks from now, they'll be struggling to finish the season.

Using a textbook to teach kids about investing at a young age will likely fail. Instead, try a non-conventional approach and participate in a fantasy football league. They'll likely learn numerous investing traits and will benefit from the skills obtained down the road. Have a great weekend.

Disclosure: At the time of this writing Ross Heart and Heart Capital LLC did not own any shares in any company mentioned in this post. The author is participating in a NFL fantasy league for the first time in over 10 years, where he is acting purely as an "assistant." He may have actually inquired during a league draft if RB Corey Dillon was still available and has very limited fantasy league experience.
Heart Capital does not offer investment advice via this medium. Under no circumstance whatsoever do these postings, opinions, charts, or any other information represent a recommendation or personalized investment, tax, or financial planning advice.

Editor's Note: This article originally appeared on the investing and economics site, See It Market.
No positions in stocks mentioned.
Heart Capital does not offer investment advice via this medium. Under no circumstance whatsoever do these postings, opinions, charts, or any other information represent a recommendation or personalized investment, tax, or financial planning advice.
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