Ignoring the hype! Value Buyer
I've toyed with a few strategies since starting this FI journey 10 months ago. While making money using any strategy I always felt uneasy about paying crazily inflated prices for young, hyped players despite making money doing so at the time.
My latest strategy is searching out young players that are undervalued and thus represent an investment opportunity, it's a more conservative approach but it's a more stable way of FI investment as your not exposed to the bitcoin like hype that your Greenwoods & Brewster type holds represent.
All young talented players will have they're moment in the sunshine within the 3 year hold, I'd see buying a promising kid at 35-40p who is likely to double in value (as a minimum) a better way of investing in the longer term rather than jumping onto the tail end (in price terms) of an overhyped youngster.
How do you know this is the tail end and why is it a 'better way'? Some people have made an absolute killing on these youngsters. Yes some will lose out but don't act superior to those making quick money.
@Burial It's not about acting superior, it's a more logical approach. I've made money from these players too but if their prices go past a point where I don't see investment as good value I'll buy value somewhere else.
I agree with your strategy, I just don't understand the prices of the youngsters who haven't even played any first team football. I'm thinking they could easily be the next macheda or djemba djemba rather than the fi god's people are predicting.
Interested to hear who you have gone for as some of your young up and comers?
@Abaalan Thanks, I've a large portfolio of 180 players currently, originally when switching to this value type investment I searched for young, undervalued players who play regularly but where their price hasn't risen too much but eventually I've added players who have potential but may not necessarily start with the first team regularly because I ran out of options...
Anyway...as a taster of some of my current investments here's a select few..
Antonin Bobichon @ 31p, Samuel Grandsir @ 27p, Rade Krunic @ 45p, Yacine Adli @ 61p, Weston McKennie @ 53p, Manuel Locatelli @ 36p, Marc Roca @ 44p, Mikel Merino @ 35p, Bernard Tekpetay @ 35p, Domingos Quina @ 39p, Keanan Bennetts @ 40p, Rolando Mandradgora @ 25p
Logic is to follow the money. I'd rather make a fortune then lose a bit and IS than make diddly squat 1p a week gradual rise.
@Vespasian32 Agreed. I've been shopping in the lower end of the market for most of the summer thinking it was the best approach, but there came a point where I had to accept that, rightly or wrongly, it's not where the majority of the money is going. Invested in Kubo, Greenwood and Brewster last night and my portfolio is up almost 15% in less than 24 hours. I don't agree with it, it makes no sense, but if you can't beat them, join them.
Mr Random number
@NewUser345234 15% in 24 hours? You must have a small portfolio.
Great going btw though
@Mr-Random-number Pretty small. I got 150 Kubos at £1.89 last night and smaller amounts of Greenwood and Brewster. Gonna ride the wave a little longer and then look to spread my money more evenly once the season starts
@Wiillaah I'm the same I've purposely avoided the hype players as buying say 500 shares in them is going to cost a couple of grand whereas I can get 500 shares of someone like Brandt or Dele for a third of the price and I am 95% sure they'll pass the £2 mark, pushing £2.50 by the Euros plus get good PB. I see my strategy as a safer bet with very good returns.
A very logical approach. As my name suggests - people don’t seem to have it and look to sell quickly to make a good profit - whereas if they had held on (in almost 95% of cases) 3 months down the line they could have made another 100% on their sells. I can’t see me selling anyone for 18/24 months.....
it's a more stable way of FI investment as your not exposed to the bitcoin like hype that your Greenwoods & Brewster type holds represent.
there's nothing wrong with looking at 'value' lower down the Index, but there is logic behind why Greenwood and Brewster are so hyped - just as Bitcoin remains the go to crypto currency.