Basketball is the sport that best matches the world of investing—both are a beautiful combination of trying to find successful strategies in something that is ultimately unpredictable.
Investors hope to properly use information about certain stocks and past and emerging trends to hopefully build a winning portfolio. At the same time, every NBA general manager attempts to gauge the future success of a young player or use the past results of a veteran to assemble a championship team.
There are a lot of lessons that basketball can teach us about investing. Here are seven of the most important ones:
Vinny Yu is the co-founder of JAVLIN Invest, a new app that allows investors to quickly gauge the risk of their stocks and adjust accordingly. Previously, he was the director of portfolio management at Providence Capital.