Keep Your Eye on the Ball


Keep Your Eye on the Ball – What Baseball Can Teach us About Investing

“Baseball is a lot like life. It’s a day-to-day existence, full of ups and downs.” – Ernie Harwell, the voice of the Detroit Tigers.

There are plenty of baseball sayings you can relate to investing — keep your eye on the ball, step up to the plate, don’t let the fear of striking out keep you from playing the game — but there’s a great lesson baseball can teach us about diversification. Think of diversification like playing defense in baseball. You may look at where a batter last hit the ball — let’s say center field — and you could place all of your players there, ensuring you catch a ball if it goes to that area of the field.

However, we know what happened during the last at bat won’t necessarily happen during the next at bat. Even if the last three batters all hit to center field, you can’t be sure the next hit will go there. What happens if the next batter hits it to the right field corner and all of your players are standing in center field?

So what do you do? Well, you spread out your players to cover as much of the field as possible, ensuring that you’re “covering your bases”…literally. The other team is bound to get some hits and maybe even score some runs, but by the end of game, chances are good you have also gotten some hits and scored some runs…maybe you even win the game. And if you didn’t win today, you might win tomorrow.

One thing is for certain: you’ll never win by putting all of your players in one place. As investors, we cover our bases by investing in many companies, countries and types of investments. By doing this we have a better chance of long-term success.

Diversification neither assures a profit nor guarantees against loss in a declining market. All investments involve risk, including the loss of principal and cannot be guaranteed against loss by a bank, custodian, or any other financial institution.

Communications such as this are not impartial and are provided in connection with advertising and marketing of the financial services offered by Guardian Capital Management, LLC. Guardian Capital Management, LLC is not an attorney or a tax professional and the information contained herein should not be considered tax or accounting advice, legal or regulatory advice. 

The information provided herein is educational in nature and not designed to be a recommendation for any specific investment product, strategy, plan feature or other purposes. Accordingly, it should not be construed by any consumer and/or prospective client as solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation. Prior to making any investment or financial decisions, an investor should seek individualized advice from a personal financial, legal, tax and other professional advisors that take into account all of the particular facts and circumstances of an investor’s own situation. Guardian Capital Management, LLC offers investment advice through Belpointe Asset Management, LLC, 125 Greenwich Avenue, Greenwich, CT 06830 (“Belpointe”). Belpointe is an investment adviser registered with the Securities and Exchange Commission (“SEC”). Registration with the SEC should not be construed to imply that the SEC has approved or endorsed qualifications or the services Belpointe offers, or that or its personnel possess a particular level of skill, expertise or training. Insurance products are offered through Guardian Resources. Important information and disclosures related to Belpointe are available at http://www.belpointe.com. Additional information pertaining to Guardian Capital Management, LLC and/or Belpointe’s registration status, its business operations, services and fees and its current written disclosure statement is available on the SEC’s Investment Adviser public website at https://www.adviserinfo.sec.gov/.   

Leave a Comment





Ready to Take The Next Step?

For more information about any of the products and services listed here, schedule a meeting today or register to attend a seminar.

Or give us a call at 608.237.1535