A viable alternative...



  • Firstly apologies for the click bait title, it's the world we live in today..you either embrace it or get left behind. lol

    Anyway I've noticed lots of people talking about the need to have money invested in the established yet expensive MB & PB type players in order to have a constant flow of dividend income to finance investment in the lower end of the market (as the opportunities arise).
    And while I don't doubt it works to an extent I think a viable alternative if you want to invest at the lower end of the market is....solely invest the lower end but use skimming profit off existing players to free up money for future holds.

    Myself I invest a set amount of £200 in each "future star" and for the players that increase in value to £300 I sell the excess so they stay at around £300 value. As I have 150 players there's a frequent amount of freed up cash which allows me to continue the cycle of finding the next superstar... while also locking in some profits on my portfolio players that have spiked for whatever reason.

    Anyway just thought I'd throw it out as an idea and see what people thought..



  • I like that strategy a lot



  • I have at present 59 players which I feel is a tad too much to be comfortable keeping tabs on.
    How on earth do you cope with 150!🤔



  • When do you decide to skim? Percentage or penny moves up?



  • @Gazz127 The players I buy would usually be cheap - 40p - 80p. I only buy very young attacking players 17 - 22 so keeping an eye on them is less important. If they get injured, I'll wait until they recover...no big deal as I see them as long term potential.



  • @Westy I purchase £200 in value of every player I hold - for the players that raise in value to above £300 I skim the profit over this amount to reinvest. So I've chosen a 50% profit as the skimming threshold but I'm thinking about lowering it to 40% to free up more cash...the only thing holding me back is £300 is a nice round number. lol



  • Similar to you,
    I invest £100 on each player,and when they reach 35% profit ( £ wise ),I sell to the market the 35%,which is 33% after commission,and reinvest that money in someone new,still leaving approx. £100 in the initial player.
    So far have taken the 35% from,
    Dendonker
    Walker
    James
    De Bruyne
    Jota
    Mount.
    Seems to be working well for me,and have made 31.1% profit on money invested since I started using this "method" on June 20th.
    Have invested £1750 total at various times since then,and current "total"amount is £2294.30,which is £544.30 profit.



  • I love the theory, but if your investing in youth then you could be kicking your self if you sold the next sancho, rashford, greenwood or Brewster once you have made 40% profit from your initial outlay?



  • @Wiillaah said in A viable alternative...:

    @Westy I purchase £200 in value of every player I hold - for the players that raise in value to above £300 I skim the profit over this amount to reinvest. So I've chosen a 50% profit as the skimming threshold but I'm thinking about lowering it to 40% to free up more cash...the only thing holding me back is £300 is a nice round number. lol

    Its a nice strategy that clearly works for you and many others. That's the beauty of FI. So many different tactics to achieve the same outcome. ... SWEET PROFIT 😊



  • @Sam-L Yup it does mean you'll restrict profit you might make on these hopefuls if they turn out to be an actual superstar but there's not many CHO's and Jadon Sancho types out there. My thoughts are there's plenty of money to be made in the average young player rising in value as his talent becomes recognized and continually repeating the process..
    I'm currently 100% up in portfolio value over a year so there's still plenty of money made this way..lots of different methods to make money on FI though. I just felt that having to lock up so much money in the Pogba type players just to free up decent levels of cash to reinvest is not for me.


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