The World Cup teaches finance

Soccer fans everywhere have their eyes and ears on The World Cup stage in South Africa. Surprising events have occurred, according to Brett Arends’s ”7 Lessons the World Cup Offers on the Stock Market” (The Wall Street Journal), and these happenings parallel the world of business. If we’re looking to better manage our financial resources, Arends’s list of World Cup tips are worthy of a reading. Here’s the quick list.

1. Don’t be shocked by “shocks.” 2. You need a strong defense. 3. You have to think globally. 4. Don’t get blinded by hope. 5. Patience wins. 6. Watch your margin of safety. 7. Don’t pin all of your hopes on the referees.

In soccer and life, timing is everything.

“Too many teams try for the quick kill–kicking the ball up field and hoping for the best. Great soccer teams–especially the Brazilians–take a very different approach. They are famous for passing the ball around dozens of times, waiting for just the right moment to strike. It works.”