Insurance against panic selling



  • I don't know whether it was a dream or what but something popped in my head this morning and left me with a reassuring feeling, regarding "risky" holds. Let me elaborate...

    Whether you are concerned about Messi retiring in 2 or 3 years, or whether you are preying Neymar doesn't get injured yet again, if you try to hold an equal amount of shares in each of your players, you are providing a bit of insurance (to some degree).

    For example, if you hold 10 Messi shares (at £6.50 each) and 10 shares each in the 20 players directly beneath him, you are theoretically in a strong position for the next 12-18 months. Whilst some people have got out of Messi already, others will start to follow over the next few months. All these people are going to be missing out on a LOT of dividends, whilst those that hold will see his share price fall slightly (offset by dividend wins).

    However, those that have sold Messi have not quit the platform (growing all the time) and withdrawn that money - it will almost certainly be reinvested. And if it's invested in similar priced players, because you have an equal amount of shares in each of your investments, that 5p loss on Messi will POTENTIALLY be offset with a 5p rise overall in your other players - in fact you could even make a further profit if somebody were to sell 1000 Messi shares at £6500 (causing you to see a 1p drop) yet reinvest it all in David De Gea (65p) acquiring 10,000 shares and pushing up his price over 10p!

    Of course, this is all hypothetical but you get my drift?
    Basically, I'm just saying RELAX 😊.

    Although I only have a portfolio of 15 players, so I don't really have that much "insurance" myself 🙈😱🤔😂



  • I try to keep my port around 40 players with a mixture of players across the board, always buy more in the cheaper players though, try to keep top end around same hold number because of reasons you said.


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