This past weekend was the NFL draft. This is where the ‘experts’ tell us who the best college players are by position. The media and the NFL makes this draft a spectacular (or is it spectacle?) event. I am always amazed at the attention this receives from the media and the fans. If you look at past performance of these ‘experts’ why would you pay any attention at all?
This event has to be considered entertainment for the fans not for reliable information.
After the event the picks by the general managers are critiqued by the same ‘experts’. In Green Bay it is a full three day event for many, not me though. I must admit however that I did add an app to my iPhone to learn the Packers picks as they occurred.
The Packers General Manager Ted Thompson, as usual, went against the ‘experts’ picks and made his own decisions. He does not only pick the player with the best physical ability but also how the player would fit into the team concept. Football remains a team sport, regardless of what the ‘experts’ say. That said, Ted Thompson like I’m sure most other General Managers have a process, a system they follow to make their picks.
I believe once a GM caves in to the public pressure or begins listening to the ‘experts’ their jobs will be lost. Sooner rather than later.
Are the GMs always right? Absolutely NOT!! However when they follow a process that they believe in they will succeed in the long term.
This is also true with successful investing. When you follow a prudent process that you believe in you will succeed long term. Of course, there will be times when your portfolio will underperform. However, by not listening to the media ‘experts’ and remaining true to your beliefs you will succeed, long term.
Investing is not a short term event but rather a long term process. You need your savings to last a life time. Gambling and speculating is not the answer. While you may get lucky chances are you will lose. A consistent proven process will get you to your financial goals.
Once the general manager and head coach have assembled their team. It is the coach’s job to develop their own proven process. The coach will instill teamwork and discipline to build a successful team. Without the guidance of a strong head coach any team will fail. Even if the team has the best players at every position without a strong coach there will be failure.
Like a NFL team a successful financial portfolio will have the guidance of an investor coach. Your investor coach will help develop a globally diversified portfolio and keep you disciplined to your long term strategy. You need to remain focused on your long term goals. Without the guidance of a strong investor coach you will be swayed by the media ‘experts’.
Without a coach you will make decisions based on short term noise.
Like a strong NFL coach your investor coach will help control your emotions during both up AND down markets.
Fire your broker/agent and hire an investor coach/fiduciary adviser.