Football Fever And Obsession

Europe is gripped by football fever. Even I, not one to fall for the charms of the round leather, find myself watching a match now and then. I’m particularly fascinated by the game of footballer veteran Ronaldo at 39 years old. I see parallels with Warren Buffett, whose age of 93 is exactly the mirror number. 

Whether on the pitch or on the stock exchange. No one masters the game quite like these two. Their common strength: staying power. 

Both gentlemen began their careers at a very young age. Ronaldo played his first international match for the Portuguese national team at the age of 18. Warren Buffett bought his first share aged 11 and launched his first fund (the “Buffett Partnership”) at 26. 

Of course, other girls and boys also buy stocks a young age and kick balls around the yard in childhood too. But often, other interests take precedence, and talent doesn’t develop into obsession. For these two, however, it most certainly did.

Linear vs. exponential

Ronaldo remained injury-free for a long time in his career and scored 130 goals in 208 international matches. And since his first purchase in November 1962, Buffett has catapulted Berkshire Hathaway shares from USD 7.60 per share to an incredible USD 617,000 today! 

Ronaldo was and is subject to the forces of linear growth. His goals do not bear compound interest. Warren Buffett, on the other hand, increased his wealth exponentially. Curious result: he accumulated 99% of his wealth only after his 65th birthday. 

What can we investors learn from this? We must start investing, or we’ll never celebrate any successes. And we must focus on consistently growing our assets. It’s not crucial whether our own portfolio or the major stock indices are ahead in any given year. What matters is steady investment and an eye for quality.