Maybe I’m a little biased. After all, for the majority of my life I’ve lived in the Bay Area, from my time in high school and even through my college playing days at the University of California, Berkeley. I’ve seen our sports teams weather storms and hoist championship trophies into the air.
It’s not a secret. The Golden State Warriors have been the hottest team in the National Basketball Association for the past two years. What many new spectators don’t know is that much of this success has come with a roller coaster of emotions for fans, doubt and a lot of discipline – much like what sometimes happens when you are on track to your long-term investment goals.
Boasting their second straight Pacific Division championship and exceeding the world’s expectations, the Golden State Warriors have taught us a few things about investing along the way:
They invest for the long term
Five years ago, people questioned if Stephen Curry would be healthy enough to finish an entire NBA season. After missing eight games in 2010, having ankle surgery in the offseason that year, and only appearing in 26 games the following season, his future in the league looked dim.
We’ve all heard the mantra, ‘invest for the long term.’ Instead of cutting what many considered a loss at the time, the Warriors kept their belief and gave Curry a four-year $44 million contract extension in the beginning of the 2012-2013 season. Curry has proved himself to be the asset to the franchise that many thought he couldn’t be.
Keep your eyes on the prize with your investments. Time heals all things, including ankles.
Undervalued (securities) players are their specialty
It’s easy to say that Stephen Curry flew below the radar since being drafted in 2009. In fact, on draft day, many people deemed him too small, out of control and unable to defend big physical players in the NBA.
In addition to Steph, the Warriors have taken undervalued players across the board and helped them grow into their potential. Draymond Green was overlooked and drafted in the second round, Klay Thompson received a dismal applause when his name was called at the NBA draft ceremony and many of their bench players were former stars deemed to be washed up upon arriving in the Bay Area.
George Putnam, an 18th-century British nobleman once stated that ‘the time to buy is when there is blood in the streets.’ Putnam is reminding us that an opportunity to make great returns on investments arises when people are fearful or when a high-quality investment has lost value. Practicing this can pay dividends in the future.
They are disciplined
When you watch the Warriors play basketball, you’re waiting to be entertained. You’re anticipating three-point shots, great defense and a brand of basketball that we’ve never seen before.
If you look closely, the Warriors do one thing really well every single night: They stick to their game plan. In investing, it’s important to stick to your financial plan, even when it doesn’t feel great.
They are coachable
These guys are professionals, but when it comes to the game of basketball, the players heed the advice of their coaches. They’re able to take constructive criticism and work with the staff to reach their goals individually and collectively.
You should work with a financial professional to help you reach your goals in the areas of retirement, investments, insurance, tax and estate planning.
They play team ball
One of the best things about the Warriors is that they are a team. On any given night, any one of the players in the Warriors’ rotation can have a career game. In addition, they don’t shy away from making the extra pass and working together.
Having a team assisting with your personal financial planning matters could provide a road map for your goals, help you maximize your current assets and give you the security of knowing that someone is on your side. A great starting point would be utilizing a financial advisor and an accountant to help with your circumstances.
The Golden State Warriors are on pace to top the all-time single season win record set by the 1995-1996 Chicago Bulls. It’s my hope that by using the lessons that they’ve taught us, you too can reach new milestones to get you closer to your investment objectives.
What are the smartest investment lessons you’ve learned? Share in the comments below!
Dasarte Yarnway is the CEO and Head of Advisory of Berknell Financial Group, a full service registered independent advisory firm that specializes in helping clients reach their objectives in the areas of Retirement, Investments, Insurance, Tax and Estate Planning.
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