Sports Stocks: NBA, MLB, NHL, and NFL Stock

SPORTS STOCKS TIPS

Owning a sports club is way too expensive for most people, but if you still want to get a piece of the pie, try investing in these sports stocks. It may seem like these companies are swimming in money because professional athletes get multi-million dollar contracts and sports teams boast ridiculous valuations. But the reality is that just like any other company, the equipment makers, broadcasters and sponsors of professional sports face fierce competition. Here are some tips to keep in mind when investing in sport stocks:

Use Your Head

Sports fans can be a bit biased when it comes to evaluating the strength of a player or team. Just because a company is affiliated with your favorite player or team does not necessarily mean it’s a good investment. Doing research and making sure the company has good fundamentals is essential.

If you’re looking to really make money in the stock market, then instead you should focus on finding a service that has beat the market the last few years in a row.  For example, there is one service whose stock picks consistently outperform the market.  Check out the performance of this one: Motley Fool Review.

Know The Season

Some sports are played year-round, but are only popular at certain times of the year. Getting to know the schedule, especially when the playoffs take place can give you a leg up on the competition. For example, late fall or early winter might be a good time to look at an NBA stock, and around September might be a good time to look at an NFL stock. Contrarily, the off-season might be a good time to buy depending on sponsorship deals or player events.

Build Your Playbook

In sports, some plays succeed and others just don’t work out. Coaches create multiple plays to mitigate this risk and increase their chances of victory by not putting all their eggs in one basket. Investing works the same way. By diversifying your portfolio, if one of your stocks has a bad quarter you won’t go belly-up.