Sports do not just entertain you or teach you about sportsmanship spirit, it fulfills a larger purpose. Would you believe us if we told you cricket lessons can go a long way in educating you about things to learn while investing. How, you ask?
Preparation is vital
Cricket is a game played in different countries across the globe however unlike most other sports where the field of play is similar worldwide, a cricket pitch differs from one city to another. This makes it crucial for batsmen and bowlers to hone their skills and be prepared to tackle a variety of conditions and pitches.
Similarly from a financial investment standpoint, investors must be prepared before taking an investment decision. You have to do substantial research and understand the growth prospects as well as risks of the asset class in which you are keen to invest.
Stay at the wicket
Batting on a challenging pitch or facing a menacing bowling attack or playing in unfavourable conditions can make or break a game of cricket. However, a good batsman exhibits tenacity and puts a price on his wicket. He waits till the conditions change in his favour or the bowler tires out so that he does not risk his game and stays at the wicket.
To a large extent we can draw a parallel between the financial world and a game of cricket. You may be tempted to pull out your capital and succumb to pressure at the slightest hint of turbulence in the market. At such times it is imperative to do what a seasoned cricketer would do – play to stay at the wicket. It is common to invest when the going is good however selling your holdings when markets are down, will not help you gain high returns on your investments. You should purchase fundamentally strong stocks when the markets are down and patiently wait out the volatility. Over a period of time, markets would turn favourable and you may have gained an attractive profit.
Play every ball on its merit
The best batsmen in the world gain mastery over a shot or two for every ball. However, the only way to score runs is to play according to the merit of the ball. A ball that is bowled on the corridor of uncertainty or a searing yorker deserves to be played with utmost respect. Then again, a half volley or a full toss can be dispatched with disdain to the fence.
An important lesson to learn from cricket is that every investment decision is unique and playing to the strength of the situation is of absolute importance. The assumptions that were considered for an earlier investing decision, which offered good profits, may not always work for another. Hence, along with the benefit of hindsight, you must evaluate the pros and cons of an existing opportunity before taking a decision.
Importance of a mentor
In the world of cricket mentors have played a transformative role. Be it Bob Woolmer who introduced new techniques to South African cricket and made the team a powerhouse during the 90s. Or John Wright who guided a talented yet under-confident Indian team to discover its potential. Even the best in the cricketing business go through phases of self-doubt and only a mentor can put them at ease.
When it comes to matters of finance it is advisable that an investor is guided in his decisions by a mentor. An experienced mentor would have witnessed several business cycles and would be well positioned to help you seek favourable opportunities whilst cautioning you to not be influenced by temporary trends.
Speed can change the game
Speed in cricket is underrated yet very important. An athletic fielder or a fit batsman can positively impact the overall result of a game.
Similarly, if you are an investor you must understand the importance of speed in yielding higher returns on your investments. It is advisable that you make smart investment choices as early as possible in order to reap maximum benefits in the future.
Cricket is a game of glorious uncertainties, and so is investing. Since the similarities are so uncanny, you can certainly seek inspiration from this wonderful game as an investor.