March Madness kicks off today! Who is going to be this year’s Cinderella story? Which #1 seed will lose first? The thrill of the NCAA tournament every year is in a league of its own. There are a number of different analogies that can be made between March Madness and investing, but I always like to go back to a very basic one. In investing, there are hundreds of ways to pick your investments, just like there are hundreds of different ways to fill out your bracket. However, the one constant factor always present is the fact that ANYTHING could happen. You could have a “sure thing” in the first round with a #15 vs. #2 seed, but then Middle Tennessee beats Michigan State. You could have a long-time great performing stock, but then something happens in the company and everything falls apart. Just a friendly reminder to remember that anything can happen, and that’s why they play the game! Certainty is a dangerous thing to have sometimes.
Here’s what I’ve been reading this morning: