Trade The Journey

Trade The Journey

The BEST Fighter Ever: The Best Investment Ever?

If you watched the UFC pay-per-view last night, where those the best fights you’ve ever seen? For me, those fights marked the emergence of a new star.

Israel Adesanya. If you get the chance, make sure to check out his latest fight against Kelvin Gastelum . ESPN+ offered you the opportunity to establish an annual account, discounting last night’s pay-per-view by forty dollars. However, since I already had an account, the pay-per-view was listed at full price.

Considering the price of the fight, could the money have been better spent somewhere else? Of course! With each pay-per-view, you take on the risk that the pay-per-view may not meet your expectations. Taking an educated guess about the outcome of the fight based on poor predictions can be costly.

Every fight looks appealing, and the sports business has mastered the art of advertising. Usually, I look at the main event and co-main event as predictors of value.

Everyone hopes that the fight is memorable. A match worthy of sharing with co-workers the next day before beginning work is almost its own pleasure.

But rarely do the fights live up to the hype. Often its the fights shown for free that provide the most excitement. The expectations for the free fight aren’t as high as for the marketed pay-per-view. The long shots are sometimes profitable events but how often?

How can we translate this into investing? We never know which stock may outperform our expectations. Moreover, like the fight, we can make educated predictions based on what we know. However, there are no guarantees.

One way of circumventing this problem is by picking pay-per-views based on fighters you like. This way you enjoy the fights because you are receiving what you expected. A fight featuring your favorite fighter. You could also base your purchase on others predictions.

Whatever you choose, there’s a risk and there’s an opportunity cost as well. The loss of what the money could be earning instead of spending it on pay-per-view and the risk the pay-per-view may be terrible.

I try to pick my pay-per-view purchases based on the potential of the main and co-main events. A co-worker judges the pay-per-view based on its entire card. But he knows about more about fighting and has a more comprehensive knowledge of the fighters strengths & weaknesses.

Even with his knowledge, a lot of his predictions for exciting fights never pan out. The fact is, no one can predict which fight will be memorable. Perhaps he can pick some of the good fights with some consistency but anticipating a great fight is not as easy.

Great fights are made up of more than skill and the win/loss history of the fighters. There are intangible factors involved like the mood and temperament of the fighters.

Some fights have a high probability of success but other’s don’t.

It seems to me that in order to make an educated guess we need the knowledge and experience. We could take the time to develop our knowledge base and experience or we could just make a guess. A guess based on nothing more than what could happen instead of what is probable.

Sometimes being probable makes you feel like your missing out on being profitable. If we are cash conscious or strapped for cash perhaps being probable is more important. Maybe the fights on regular television might suit your preference/risk level better than a bet on pay-per-view.

Whichever route you choose make sure you have fun doing it. Remember: One great thing about the market is we aren’t stuck with the purchase, we can cut our losses.

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