THE much-awaited “Fight of the Century” between the two pound-for-pound fighters turned out to be one of the most boring fights in the history of boxing. Mayweather may have been known as the best defensive fighter and what he did can also be applied to our personal finance.
Locking in profit. In investing, especially in the stock market, it is a wise move to lock in the profit when the market turns in the opposite direction. The investor can liquidate his investment when he sees the market going down, and when the market is on the uptrend again, he can reinvest it along with the profit. Mayweather did just that. He jabbed and made solid punches and then withdrew to avoid being counterpunched. He controlled the pace and let Pacquiao fight his game and get the nod of the judges. This is also similar to saving money little by little. As a good defensive fighter, he avoided getting hit but hits back when there is an opportunity. As investors, we must also learn to avoid being hit by losses and hit back to profit when the opportunity arises.
Dodge. Mayweather used this technique effectively. When Pacquiao lunges for an attack, Mayweather was quick to dodge and avoid the oncoming punch. Avoiding punches is better than absorbing it. As he avoided it, he can then make a counterpunch or a jab. Nowadays, scams are very visible and, inexplicably, most people do not know how to dodge. They fall prey to the sales pitch of the scammers and part ways with their money. In boxing, fighters often lose due to the temptation to mix it out as can be seen from the past knockouts. In dealing with tempting investment offers, learn to calm down and think creatively about the deal offered. If the offer sounds too good to be true, it can be like a knock-out punch in boxing due to a deceptive move by the other fighter. The best move is to avoid it and then deliver the counterpunch by reporting it to the proper authorities. As fighters study each other, investors also need to study the instrument. When you are properly informed, you can defend yourself against agents of deception. Defense is the best offense.
Create a demand. When the fight was first conceptualized, Mayweather was very cunning in avoiding the fight to the point that he was called “Gayweather.” Everybody thought he was afraid to slug it out with Pacquiao. Little did the people know that by delaying and hyping the fight, Mayweather was successful in doubling the prize. So huge demand was the idea that the more he dillydallied, the higher the prize money he got. When the fight was over, it was evident that Mayweather came not to knock out Pacquiao but to get his reward. Demand gives value. In the corporate world, the more you are needed, the higher the salary that will be offered to you. Whoever is indispensable makes the most money. Whatever industry you are in, as long as you have an area of expertise or an area where you are passionate about, people naturally seek out your services. Why is Pacquiao so successful? Because boxing is his passion and his goal is always to entertain the audience. That’s why even during his last fight where he lost, he was loved by all and is still the people’s champ. No wonder you see him in billboards and TV commercials as product endorser.
Discipline. This is the most important aspect of the fight. In training, a fighter without discipline is bound to fail. Training enables a fighter to gain stamina, strength and durability for a fight. Even a three-minute round can drain one of a lot of energy. Most fighters who got knocked out are often compelling proof of lack of discipline. In the world of money management, we also need training. That is why there are various seminars in insurance, mutual fund, real-estate, stock market. We need to learn so that when we do the actual investing, we will not suffer a devastating knock out. There is no one who can help you but yourself. Start investing in your education with discipline and be a good investor as Mayweather and Pacquiao are good boxers.
Edmund Lao is registered financial planner of RFP Philippines. To learn about estate planning, attend the globally recognized Chartered Trust and Estate Planner (CTEP) program on June 6 to July 11. For more details, inquire at email@example.com or text <name><e-mail><CTEP> at 0917-3464126.