COVER STORY
Pass
“ Emotions can kill in tra might get into a company just because you like it and wrong price ”
Marcus de Maria Chief executive of Investment Mastery such as taking a long-term view , are more important than ever in this area . “ When a team wins a major tournament , or its star player is injured , the market often reacts very sharply ,” he says . However , he pays more attention to factors such as the quality of financial governance , avoiding clubs that are pressured by external forces . This has led him away from footballing giants such as Juventus and towards lowerprofile clubs such as Ajax , Borussia Dortmund and Olympique Lyonnais . “ We consider ourselves as value investors in the sense we want to buy cheap and sell high , and this is what these three clubs do ,” Álvarez says . “ They create talent cheaply in the transfer market or in academies and sell it at a higher price to elite clubs .”
Back down to earth While a small allocation to a personal passion can add an extra dimension to your portfolio , it shouldn ’ t be at the expense of broader ideas . “ The key is to have a strategy with well-defined rules ,” advises de Maria . “ Focus on your interests , but don ’ t miss out on areas you aren ’ t passionate about that could make a lot of money .” “ Passion isn ’ t a bad place to start ,” adds Wall , “ but don ’ t let your heart rule your head . Do your due diligence on a company ’ s long-term prospects before taking the plunge .”
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