My NCAA Basketball Bracket
What a tournament! March Madness did not disappoint. I was rooting for Baylor to win, and they did! I entered ESPN's Tournament Challenge and finished in the 94th percentile, ranking 843,000 out of 14 million. My final game prediction was Baylor beating Gonzaga 74 – 72. The final score was 86 – 70. As always, there were several surprises and exciting moments like UCLA's march to the final four and Jared Suggs game-winning shot.
Scott Drew inherited a struggling Baylor Basketball program in 2003 with the goal of winning a national championship. His assistant head coach, Jerome Tang, joined Coach Drew's staff the same year. It took them eighteen years of blood, sweat, and tears to realize their dream. At the time, Baylor Basketball was involved in a scandal when one player murdered another, and their former coach was making financial payments to players. It was a dark time to take over the program, but their perseverance, faith, and vision paid off.
Investors can learn much from the tournament and the Baylor Bears. To succeed as an investor, you need a plan, patience, vision, and luck. Long-term thinking is a must. And, buying stocks when they're down is an excellent way to acquire great companies at discounted prices.
Learning to overcome losses is also essential because when you invest, you will own some losers. There were 68 teams in the tournament - 67 losers and one winner. However, every team that made it to the big dance had a successful season, and most of them will return next year. Gonzaga ended their season with a record of 31-1, the University of North Texas won their first-ever tournament game, and Abilene Christian stunned Texas. Cut your losses, learn from your mistakes, and refine your process. Don't be distraught with your losers, and let your winners run.
Diversification is also a must. The Baylor team has several elite athletes, role players, and specialists, and every person contributed to the team's success. Your portfolio needs several components to perform well. A globally diversified portfolio of low-cost funds gives you exposure to numerous markets and thousands of securities, each playing a vital role.
To produce generational wealth, build your team, diversify your assets, invest often, and think long-term.
I've missed more than 9000 shots in my career. I've lost almost 300 games. 26 times, I've been trusted to take the game-winning shot and missed. I've failed over and over and over again in my life. And that is why I succeed. ~ Michael Jordan
April 6, 2021
Bill Parrott, CFP®, is the President and CEO of Parrott Wealth Management in Austin, Texas. Parrott Wealth Management is a fee-only, fiduciary, registered investment advisor firm. Our goal is to remove complexity, confusion, and worry from the investment and financial planning process so our clients can pursue a life of purpose. Our firm does not have an asset or fee minimum, and we work with anybody who needs financial help regardless of age, income, or asset level. PWM's custodian is TD Ameritrade, and our annual fee starts at .5% of your assets and drops depending on the level of your assets.
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