What the Patriots Superbowl Win Can Teach Us About Investing

Yesterday marked another Superbowl win for the New England Patriots. Tom Brady now has 6 Superbowl rings and Bill Belichick has also won his sixth and extended the record to most Superbowls as a head coach to eight. Most people are amazed at how consistent the Patriots have been over the years and seem to count them out especially because they believe father time will catch up with Tom Brady sooner rather than later. NBA basketball player, Lebron James, and Tom Brady have defied that logic by proving doubters wrong and performing at the highest level being on the back-end of their careers.
Regardless of how fans of other teams feel about the New England Patriots, they do admire why the Patriots win even when the stakes are high. The Patriots consistency is a thing of beauty and should be admired as it is worthy of respect. They have been able to win because of great leadership, being prepared, never giving up, and thriving when the  stakes are high. These are things that translate to investing in the stock market and in any market in general.
In investing, it is always wise to purchase companies with a wide moat as these companies are more likely to generate superior returns over the long run. Warren Buffet once said “In business, I look for economic castles protected by unbreachable moats.” Companies that have a lot of competitive advantage making it difficult for its rivals to gain market share of that industry are regarded as moats. Companies such as Apple (AAPL), Facebook (FB), and Berkshire Hathaway (BRK.B) are widely known as moats within their industries. It is difficult to go wrong investing in a moat as they hold tremendous power and are able to impact their industry in a major way through technological breakthroughs from R&D, acquisitions, and consistent cash flow generation leading to continued dominance and leadership within its sector.
As an investor, it is difficult to stay consistent given the swings and volatility in the market but they say the slow and steady wins the race. I would anchor more on the “steady” portion of that statement as being steady encourages consistency and not deviating from the strategy and philosophy employed through time while investing. Investing in the currently “hot thing” does not always pan out well for most, as seen in the recent Bitcoin craze some months ago. Bitcoin has lost over 80% of its value from its peak in December 2017. As with most things in life, there will always be something new but it is important to hash out the fundamentally sound companies that have generated consistent returns through time because at the end of the day, those are the ones left standing. Always being prepared by consistently researching companies will always benefit an investor. Websites such as Nasdaq.com provide daily stock market overview and tremendous research and valuation information to the general public.
Thriving when the stakes are high can be related to buying when there is blood on the streets. Money in the stock market is not made when times are good, money is made when the market is in a correction because that is when bargain deals can be made and your favorite stocks can be bought on sale. We had a correction in the market during the 4th quarter of 2018. A correction by definition is when the market declines by 20%. Those who bought the S&P 500 or the Nasdaq 100 then would have see their investment increase because at the end of January 2019, those indexes have risen by 7-10%.
The New England Patriots winning another Superbowl reminds us that being consistent and disciplined are fundamental to success. Employing these qualities while investing is necessary for continued success. It is better to the focused on the long term and platforms such as M1 Finance provide investors free trading of stocks, bonds, ETFs within taxable and retirement accounts.


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