2014 World Cup

Finally, the 2014 World Cup is coming to an end. On next Monday morning, the final will be between Argentina and Germany. Interestingly, some punters will start to look at some of the most unusual animals during this period for guidance and prediction on the World Cup winner. I still remembered the Octopus that picked the wrong team in the 2010 final. I wondered what had happened to it after that game. I bet it had not predicted its own bleak future correctly then. This year, we have other animals like the Oracle turtle that has picked Argentina to be the winner and the Nelly the elephant that backs Germany to be the winner. Wonder whose future will be at stake this time?

Recently, I have read an article about whether it makes more sense to invest like Germany where you will have high volatility and high return or to invest like Argentina where you will probably have low volatility and low return. Well, Germany has beat Brazil 7-1 before reaching the final. Argentina is a relatively less exciting team and it has so far managed to beat the opponents by only a single goal before reaching semi-finals. In a way, Argentina looks boring while Germany looks vibrant and energetic.

Warren Buffett and George Soros have said this before. Good investing should be boring.  Good investment should be the ones that are able to give you good and stable return over the years. The wise saying is that the dullest of businesses can make the best investment. Look for those companies with good franchise and strong management. If you are able to find one such company to invest in, stay with them. Ignore the noises and volatility of the market. You can fall into a deep sleep for the next 10 years and you can rest assured that these companies will still be around and profitable after waking up from your sleep.

I have also come across the following quote in some investment seminar and I think you may find it useful - “You will not die if you have no class, but you will certainly fail if you have no substance”. And, that’s Argentina. One single goal is enough to wipe out your opponent. Why need more? I hope Argentina wins the World Cup this year, perhaps by a single goal.