Football is America’s Greatest Sport.

It’s athletic in nature, but it is full of mental strategy. Many have said that football is not just a ball game, but a game about life. In life, everybody is concerned about money, but I bet you never thought you could learn about the world of investing from the gridiron.

This is that time of year where the wives and girlfriends leave their husbands and boyfriends to scratch, belch and drink beer all day on Sundays, without too much complaint. This article will help you score some extra points with your significant other. Just let her know you got some valuable investment lessons during game time on Sundays and Monday night so you can retire early.  

Every aspect of this game can be linked directly to investing.

For starters every football team is a collection or portfolio of players. Just like every portfolio is a collection of various investment vehicles.

You have two teams on a field that is approximately 100 yard long and 53 yards wide. One team is on offense and the other team is on defense. Each team has 11 players on the field. Each team’s goal is to outscore the other.  

The team on offense has control of the football and is looking to score points by running and throwing the ball in an attempt to crossover into the endzone. The Defense’s job is to stop the Offense from getting into the endzone. If the team with the ball does score or is forced to give up possession, the offensive and defensive teams switch roles.

The ultimate goal of every team is to win a Super Bowl. For your average investor, the Super Bowl could mean exotic travel in their retirement years or paying of a grandchild to go to college.

When you look at the positions the players hold on offense and defense they can be categorized into skilled and non-skilled. Usually, the skilled players are usually smaller and faster. They have exceptional ability in running, jumping, catching, throwing and/or kicking, while all other players are on the line. Quarterbacks, running backs and wide receivers are all considered Skilled positions, These are the players most likely make the highlight reel on Sports center.

For investors, the job of the offensive players/positions is to make money. Put the points on the board. This is considered a wealth accumulation role…. Defensive players have the exact opposite role, their job is to protect money, or serve in the function of capital preservation.

Offensive lineups in investing could be made up of stocks whose companies have great management, excellent business models and huge potential for growth. For example, an upstart tech company that created a revolutionary technology.  These stocks have the possibility to score a touchdown. Having a winning stock in the game of wealth accumulation is like scoring touchdowns in football.

On the other side of the ball is your defensive lineup. It is built to protect the wealth that was previously accumulated just like the defensive squad of a football team’s purpose is to protect the lead that the offense created. Many investors use stocks and bonds to protect their wealth. For example, a utility company with operations in booming metropolis areas, with stable revenues, but not looking to do anything spectacular from a growth standpoint. This company could be a great player in a defensive position on your investment team.   

Each football position has a set of characteristics that are needed to support the team’s winning efforts. This is also true in investing. Every team is built in a specific way, for a specific reason. Every investor should build their portfolio for a specific reason as well.

Some teams run the ball well, others pass the ball excellently and still others are known for their strong defensive game. An investor’s portfolio should follow suit; where some portfolios are built for growth, other are built to generate income through dividends or protect capital.

Every portfolio, should be built with a specific purpose in mind. Using the football team model, you can build a customized portfolio to suit your needs.  If you are younger you can can be more offensive, if you are in or approaching retirement your defensive game needs to be a priority.

If you use the principles that a football team would use to build out their offensive and defensive teams, your investment strategies can be quite successful. Just like every position has a role or assignment, every investment within your portfolio should have a role or assignment. Depending on your situation you can have all offensive players or you could have none. The same thing applies to your Defensive team. Ultimately, your team should be built for you to win - whatever that means to you.