Experienced Investor
Three investment lessons from Leicester City’s title win
Well, they did it. And if you, like me, felt a strange, momentary anti-climax given Leicester City Football Club didn’t need to kick a ball last week to win the English Premier League, you should be over it by now.
With superlatives coming thick and fast, we might conclude that this is one of the most striking moments in the history of British sport.
It is hard not to hear the echoes in the challenges of successful fund management and behavioural bias.
Perhaps more admirable than winning the Premier League while defeating those wealthier, stronger clubs, is the stark fact that in spite of the temptation to limit their play and consolidate their gains, Leicester City collectively defeated the behavioural bias of loss aversion.
It was the equivalent of avoiding the fund manager’s temptation to lock in gains too soon and become overly protective, or an advisory client’s counter-productive desire to avoid losses at all costs without understanding risk as manifested by volatility.
It raises the question of how they have done it and what might we learn, so here are three Schroders conclusions from Leicester City’s success:
Related Posts
There are 0 Comment(s)
Everything you need to know about being furloughed
Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...
The savings accounts paying the most interest
If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...
Coronavirus and your finances: what help can you get in the second lockdown?
News and updates on everything to do with coronavirus and your personal finances.
What will happen if rates change
How your finances will be impacted by a rise in interest rates.
Regular Savings Calculator
Small regular contributions can build up nicely over time.
Online Savings Calculator
Work out how your online savings can build over time.
Having a baby and your finances: seven top tips
We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...
Protecting family wealth: 10 tips for cutting inheritance tax
Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...
Travel insurance: Five tips to ensure a successful claim
Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...
Money Tips of the Week
© AE3 Media Ltd, Floor 7, Lincoln House, 296 - 300 High Holborn, London WC1V 7JH, Company.
