If you’re not following the cricket drama over in England, you should be…
As our boys continue their dominance over the poms, criticisms and name-calling have erupted from the competition. It all started after one English batter, Jonny Bairstow, was caught sleeping on the pitch.
The fool walked out of his crease in the midst of a live ball and was promptly stumped!
It’s the kind of embarrassing dismissal you don’t expect from professionals.
This is a mistake that usually only amateurs make. And only make once for that matter…
Either way, the English team and fans weren’t happy.
They’ve called into question our adherence to the ‘spirit of the game’. And what a load of rubbish it is.
As usual, this whinging is simply an excuse for just that…more whinging.
The poms have always been sore losers, especially when it comes to cricket. They just can’t hack the fact that we’ve had their number since the early 90s.
The record sits in our favour 11–5 with only one draw in that three-decade span. And it looks like we’re about to make it 12!
But what does cricket have to do with markets and investing?
More than you might think…
A legend in and out of the game
See, my love for cricket was passed down from my grandfather, Jack Ledward. He lived and breathed the sport all his life, not only playing for his state but almost for his country.
But unlike today’s cricketers, he came from a different era. Playing back in the 1930s, cricket was a far different game with a far different acumen.
The only real similarity was that Australia, like now, were dominating the sport. A fact that was largely thanks to the one and only Don Bradman.
Even if you’re not a cricket fan, you will have heard of ‘The Don’.
He is an Australian icon because of his freakish cricketing performance. A man who holds a record batting average that is unlikely to ever be beaten: 99.94 run average over his Test cricket career.
For comparison, Steve Smith, probably the best modern test batsman, only averages 59.56. It’s simply incredible just how much better Bradman was than everyone else on the pitch.
What a lot of people don’t know about Bradman, though, is that he was also a stockbroker.
Back in his days, being a cricket star didn’t pay all that well. That’s why many cricketers had to find other jobs simply to keep their families fed.
The fact that Bradman turned to financial markets, though, was very telling. As a reserved but calculating individual, his greatest asset was his mind…not his batting arms.
He was likely one of the smartest people on and off the pitch. Which is why, when he got into stockbroking, he could carry over much of the mental game of cricket into his other career.
As dissimilar as they may seem, Test cricket and investing are quite alike.
You need patience, cunning, and keen understanding of the field and all its players. More than that, you also need to be flexible in adhering to the situation.
As Bradman’s batting has been described:
‘At his peak, in the mid-1930s, he had the ability to switch between a defensive and attacking approach as the occasion demanded.’
This is exactly what the best investors also do. It’s also almost certainly why Bradman managed to have such a long career as a broker, even ending up starting his own investment firm in the end.
And this is why, right now, you also need to invest like Bradman…
Playing to the market
It doesn’t matter what type of investor you are, the market plays by its own rules.
All you can do is adapt and find the best possible way to play along with it during volatile times. That’s why right now probably isn’t the best time to go all-in on anything risky.
Defence, not offence, is the name of the game.
But while you could just stow your wealth away in cash, that would also be a fool’s errand. You’re only going to wind up going backwards if you can’t keep up with inflation.
That’s why getting out of the market isn’t the right play either.
Instead, you need to find the best defensive way to invest in the market. And when it comes to such defensive plays, dividend stocks are usually your best bet.
Getting a regular income payout from your investment is a great way to hedge against a bleak macro backdrop. It ensures you’re still getting at least some form of return, even if the share price may be flat.
But as our own investment director, Greg Canavan, will tell you, there are ways to get both.
You can find stocks that offer up decent potential for share price gains and a fat dividend as well.
In fact, Greg has handpicked six of his favourite stocks that fit this bill to a tee. This ‘Royal Dividend’ portfolio, as he calls it, is exactly what most investors probably need right now.
You can check it out for yourself, by clicking here.
I promise you won’t regret at least taking the time out of your day to read what Greg has to say.
After all, even if you’re not a fan of cricket, you can learn from England’s mistakes. Because if you get cocky like they have, you may wind up looking just as humiliated.
Make sure you don’t, by taking a leaf out of Bradman’s own playbook.
Regards,
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Ryan Clarkson-Ledward,
Editor, Money Morning
