The Premier League is arguably the most followed and recognised football competition in the world. Not only do Premier League clubs, like Chelsea, Manchester United, and Liverpool, repeatedly win prestigious tournaments like the Champions League and FA cup they attract and produce some of the world’s best players. Football, like investing, involves strategy, forward thinking, skill and risk-taking to get to the top of the league. Just like investors, the level of risk taken by Premier League players vary from one footballer to another. So which PL player are you most like when it comes to investing – are you cautious, adventurous, and somewhere in between?
Cautious like Eric Dier (Tottenham)
Since 2014, Eric Dier has helped reinforce Tottenham’s defence by taking few risks. The defensive midfielder tends to be vigilant when he’s on the field: he rarely goes forward, focussing instead on slowing down attacks and stopping opponents from going forward by intercepting the ball with controlled and measured tackles. Put simply, the Spurs player’s main mission is to limit losses by preventing his team from conceding goals. A player like Dier might opt for a Cautious portfolio which is focussed on limiting movements up and down with the aim of avoiding big losses.
Tentative like Fernandinho (Manchester City)
Just like Eric Dier, Fernandinho plays as a defensive midfielder, meaning his aim is to dispossess opponents of the ball and prevent them from scoring. But unlike Dier, Fernandinho is willing to take a slightly greater risk and participate in offensive plays by taking advantage of space and moving the ball quickly forward to deliver it to more creative team players. If like Fernandinho, you’re trying to limit losses, but you can accept moderate risk in return for making some gains, you may consider a Tentative portfolio.
Confident like Paul Pogba (Manchester United)
As Manchester United’s midfielder, Paul Pogba is a highly versatile footballer. Not only does he spend time breaking up attacks from the opposing team, he also creates goal opportunities for his teammates and goes for goals himself too - this requires Pogba to take risks, to be comfortable placing himself in the middle of the action and to have a well-balanced set of skills. Playing in the heart of the midfield also means that he must deal with significant movements to each end of the pitch as the ball is lost and won. As a medium-risk (Confident) investor, your portfolio will be a balance of low and higher risk investments, meaning your investment plan is likely to see moves up and down. Like Pogba, you must be able to take losses as well as gains in your stride.
Ambitious like Mesut Özil (Arsenal)
Mesut Özil has been playing for Arsenal since 2013. His main role is to move the game forward, give assists to strikers, and score goals himself. To fulfil his attacking duties, he must risk going at defenders, controlling and slipping the ball through tight spaces in order to maximise the opportunity to score goals, even if it means possibly losing possession in the process. The investing equivalent of Özil would be an Ambitious Plan, which accepts the risk of large losses in pursuit of higher growth. With this investment style, you can expect large movements up and down in the value of your plan.
Adventurous like Eden Hazard (Chelsea)
Eden Hazard is a creative player who takes high risks to try and get a win for the ‘Blues’. He is particularly known for his impressive sprints involving technical moves and stylistic dribbles, which can either result in a spectacular goal, or cost him the ball and potentially a conceded goal. If like Hazard, maximising gains is your priority but you’re happy to accept losses if things don’t go as planned, you might be an Adventurous investor.
When it comes to investing, it’s important to find the right balance between the risk you’re comfortable taking and the level of return you’re seeking. Asking yourself ‘is limiting losses more important to me than making gains?’ could help you determine your risk appetite and the investment style that suits you. At Wealthify, we have 5 investment styles (Cautious, Tentative, Confident, Ambitious, and Adventurous) and all you need to do is choose the one that matches your attitude to risk.
Please remember the value of your investments can go down as well as up, and you could get back less than invested.
Investing is for everyone.
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The comments and opinions expressed in this article are the author's own and should not be taken as financial advice from Wealthify.