The Motley Fool

4 investing lessons from Game of Thrones

Given its twists, turns, shocks, horror, good, evil, deceit, betrayal, duplicitous characters, and removal from reality the local share market actually has a lot of parallels with hit reality show Game of Thrones.

I must admit to being no GoT expert, but I do know if some people spent as much time researching the stock market as they do watching the show then they’d be among the world’s leading investing experts.

In fact GoT’s wild popularity even has a few lessons for aspiring investors on how to make money in the real world.

So here we go.

1. “Be careful who you trust”  – like GoT the share market is full of story tellers boasting of big things, but constantly crashing back to earth. Therefore investors must be careful in deciding what companies are telling a story to impress and what companies are the real deal in generating consistent profit growth. Which side of this line you end up will be a huge driver of your overall returns.

2. “Don’t believe the hype” given the panning the final season of GoT received from the media and public we know that hype and expectation can sometimes lead us into making mistakes in the share market. For example a lot of speculators bid the likes of speculative stocks like Splitit Ltd (ASX: SPT), Yojee Ltd (ASX: YOJ), GetSwift Ltd (ASX: GSW) and Auscann Ltd (ASX: AC8) scarily high on nothing but tall tales. Only to be confronted with painful price plunges later.

3.The biggest risk, may be not taking enough risk” – GoT is all about getting ahead in life, which is a shared aim of many share market participants. So while the first two lessons may seem a little scary it’s important to remember there’s no reward without risk in the share market with the two inversely correlated. So assuming you’ve learned how to identify and avoid the pitfalls then taking on more risk in terms of buying growth-oriented companies (over income-oriented companies) makes sense if you want to end up on top.

4.Winter isn’t coming” – the media is constantly full of headlines predicting a coming crash or King Joffrey-style share market Armageddon, although over the long term developed share markets have always gone higher. Therefore attempting to avoid Winter by selling out ahead of an anticipated cold snap is usually an expensive mistake.

So don’t be afraid of the dark….

And apologies for any inadvertent spoilers, but the good thing about the share market over GoT is nobody knows what will happen before you.

This gives you a potential edge to find and buy companies that could be bigger global hits than GoT in the future.

Luckily, I’m happy to personally recommend one of the businesses named below as a potentially massive hit and I even bought shares in it myself not that long ago….

It’s hard to believe what these 2 ASX companies could mean to the digital payments revolution

The Motley Fool’s top tech analyst has spent years studying the huge global trend in which cash and traditional banks give way to new digital payments systems... And now he’s identified the two ASX companies he believes are poised to win this multi-trillion-dollar “war on cash.”

If he’s right, these two companies could power your portfolio for years to come. Heck, stock #1 is already up 204% in just the last two years...

While Stock #2 has climbed a stunning 954% just since 2015.

Yet we think the biggest returns look to be still ahead. In fact, our expert is convinced investors who act now could be in for 10X gains (or more). Which means you will want to get the details on these 2 ASX companies as soon as possible.

So click the link below right now! We’ll tell you how to pick up your free copy of this brand new report, “Leave Your Wallet at Home: 2 Stocks for the Digital Payments Revolution”…


Motley Fool contributor Tom Richardson owns shares of AFTERPAY T FPO.

You can find Tom on Twitter @tommyr345

The Motley Fool Australia owns shares of AFTERPAY T FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

NEW. Five Cheap and Good Stocks to Buy in 2019…

Our Motley Fool experts have just released a brand new FREE report, detailing 5 dirt cheap shares that you can buy today.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading near a 52-week low all while offering a 2.8% fully franked yield…

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.