This past weekend we've witnessed one of the most eagerly awaited boxing match in the century. To be honest, I've hardly watched any boxing match since my last days of Mike Tyson before switching to a regular in Wrestling event. In any case, let's go through the 3 things that we can learn from the event itself.
1.) Everyone Having High Expectations
I think there is an overly publicized attempt for the match. Every social media I go to, they are talking about the events. This is not a surprise since this is a much awaited event for the fight of the century so everyone has very high expectations going into the match. Starhub is quick and smart to make this a PPV event which viewers need to pay for the premium in order to enjoy the much highly anticipated sports event of the year.
The problem with high expectations is that you are setting yourself up for disappointment when it does not reach the climax you desire. I've had a couple of events like this when watching movies and I suffer from the lack of climax prime time to time from it.
Similar to investing, many investors pay a high price for a stock usually in anticipation for the company to grow well over the next few years. When earnings or growth disappoints, the stock will suffer a dramatic fall back to the mean reversion of where they belong to.
For the information, I watched via youtube a couple of hours after the match ended and thought it was a pretty decent match. After all, I understand the hype this time and lowered my expectations accordingly. Worked perfectly for me.
2.) Understand The Rules Of The Game
There were probably millions of people watching this match and probably only a minor few are boxing fans to begin with. The rest had probably never watched a single match of boxing prior to this.
The thing with boxing is the rules of the game are very different from other sports we are more familiar with. The boxers are usually very strategic and unless it's a clear one sided or knock-out, it usually goes to the full 12 rounds and the judges will determine the winner based on a few set of criterias. Boxing match is usually this dull, especially when this involves a very highly hyped event throughout the year. If you want more adventurous, viewers should switch to wrestling the way I did. I bet Undertaker vs Brock Lesnar at Wrestlemania will give you more satisfaction than any boxing match you anticipate in.
Similar to investing, when an investor purchases stock without understanding the fundamental of the company well, they are likely to be disappointed and suffered when things are not progressing well. Like all things, it's better to understand the rules of the game first before commenting on what you think should be the outcome.
3.) Supporting The Underdog
I don't know about you but whenever I am a neutral viewer when watching movies or events, I like to support the underdog. It almost feels like dramas fully captivated when the underdog loses at first, then trains hard and finally being able to outdone the favorites.
Mayweather and Pacquiao are no David vs Goliath. But the logical seems to portray that very well. While one comes from a much humble background, the other seems to be a prey when it comes to money $.
In investing, we can see this from a big versus small capitalization company point of view. While many tend to stick with the blue chip because they are clear favorites, sometimes the odds does not seem to bode well for them because they are either overpriced or simply too many people are backing them, making the boat tide sinks in gambling terms. Oh well, at least in the boxing match, we do see the favorites winning.