Hello from Kansas City, where we are collectively licking our wounds after the Chiefs’ loss in the AFC Championship, as fans from coast to coast prepare for the Super Bowl LVI matchup of the Rams and Bengals.
Like many others in the region and across the football landscape, I expected Andy Reid & Co. to hoist another Vince Lombardi Trophy in Los Angeles. But, upon closer inspection, this year’s team just didn’t have the right ingredients – the right mix – at the right time to get to the big game.
As I’ve thought about my local football franchise the past week, my mind has turned to the many commonalities between football and investing. They both can be challenging, stressful, and require that right mix to be successful.
In the case of football, that means proficiency on offense, defense and special teams, the three units that comprise every squad from youth leagues to the pros. Yet, we seldom consider the impact of the latter, special teams, until a big play in the kicking game changes the game’s momentum, as happened (twice) in San Francisco’s win over Green Bay in this year’s playoffs.
If you were to guess the top 10 scorers in NFL history, who would you think is at the top of the list? Names like Jerry Rice, Emmitt Smith, or Randy Moss, right? Well, would you believe the all-time leader is actually a kicker, Adam Vinatieri, formerly of the Patriots and Colts. In fact, the top 25 scorers in league history are kickers, in spite of how little game time they spend on the field relative to their teammates on offense and defense. Simply put, good special teams are critical as a team tries to find the right mix.
Similarly, the right mix is as important for an investment portfolio as it is for a championship football team. It’s critical to be multi-dimensional, balanced, and nimble as that helps us survive the highs and lows that any market invariably experiences. And the importance of alternative investments, for example, is, in many ways, like that of special teams. True, alternatives may not be a big percentage of a portfolio but they can have a profound impact on one’s personal fortune.
In that vein, in last month’s blog, I wrote about the importance of adapting in order to succeed in today’s market environment, the need to think about how we can make our retirement savings last 20, 30 years or more. How we can make sure our individual investment strategies meet the challenges of our rapidly evolving world.
At Realto, we believe our proprietary model for the secondary trading of previously illiquid real estate and alternative assets offers unique opportunities for growth and the preservation of wealth. We’ve built our platform to play a key role in diversifying portfolios in order to provide the financial security investors desire. And we’re here ready to work with you.
Rather than close with a prediction, I’ll save that for the experts, especially since I have a dog in the fight due to a friendly relationship with Cincinnati’s Burrow family. Instead, I’ll relax with family and friends and enjoy the game, all while keeping a close eye on those special teams.
Jeff Kinney – President, Realto