Fantasy Picks


Fantasy stocks and fantasy football (Matthew Berry the “Talented Mr. Roto” and author of “A Fantasy Life”).

I think picking stocks is kind of a fun topic. OK, so it’s not laugh-out-loud, roll-on-the-floor fun, but I think everyone likes to talk about the stock that they made a killing on. Similarly, talking about the stocks you bought or should have bought is just like drafting players for your fantasy football team. So this is kind of an homage to fantasy sports.

In addition to being “fun”, I think framing an investment decision on a specific individual stock is far easier to understand than talking about mutual funds, index funds or other broader, macro-type investments.

This will not only cover fun “big fish tales” (the stocks that made us a ton of money), but it will also cover some stock investments that cost us a lot of dough. Usually, these bad investments teach us lessons that tend to stick with us the longest because you feel the pain when you lose money. My personal philosophy is that a mistake is never a failure as long as you learn something from it. If you incorporate what you learn, you become a better investor.

Again, this is not a list of stocks I am recommending (all the legal disclaimers… don’t buy just on a stock tip alone, you should always do your own analysis, etc.). This is more of a real-life case study teaching tool. We will talk about some individual stock picks and frame them within the topics in the Investing section of our blog. We will have some basic analysis, but also try to point out some other angles to consider.

Another thing to remember… Like fantasy football, some players you draft are great for fantasy, but may not be great in real-life and vice-versa (i.e., they have great stat lines and rack up a bunch of fantasy points, but they don’t help their real-life team win close games). Similarly, making a great stock pick doesn’t make your financial plan. In real-life, it’s more important to have a good investment strategy and systematic methodology that you can execute.

1 Comment