Game of Thrones, HBO’s show of the decade, is finally over. The fantasy series based on George R.R. Martin’s books has enthralled audiences around the world for almost a decade, but it's now time to say goodbye. To commemorate the farewell, here are four lessons from Game of Thrones that you can apply when investing (obviously, spoilers for the entire series below):
1. Prepare For The Unexpected
Game of Thrones was a masterclass in creating unexpected moments. One of the most shocking was Ned Stark's execution back in season one. The main character, who many believed would continue to drive the show forward, was suddenly executed, never to be seen on the show again.
Unexpected twists and turns are a common occurrence in the market. A single tweet can send the entire market higher or lower, and even when everything seems right - bad news is always potentially waiting around the corner.
Proper risk management is a critical aspect of being a successful investor. Not being too invested can ensure that you manage to keep a standard of living through market downturns. Diversifying - not having one major dominant position - can also save your portfolio when something almost inevitably goes wrong.
2. Don’t Get Complacent After A Few Wins
In Game of Thrones, you win or you die. You mostly die, if we’re honest. Another tragedy hit House Stark when in season three Rob decided not to marry Walder Frey’s daughter. His decision came after a few wins against the Lannisters, and his false sense of security was his downfall.
The markets offer us plenty of opportunities to feel confident in our trading abilities. It’s easy to get carried away too fast after a few good trades, only to lose it all when the stakes are at their highest.
Always be aware of your mental state when investing, and make sure to strictly apply your investment thesis. Carefully thinking about each investment decision and trade can make sure you don’t end up like Rob Stark.
3. Everyone Makes Mistakes, Live To Fight Another Day
Over the course of the 8 seasons, many mistakes have been made. Tyrion’s decisions to send Jon to capture a wight beyond the wall or to believe Cersei would send troops north were two of his biggest mistakes. Nevertheless, Tyrion ended the series as the king’s right hand because he always managed to keep his cool, collect himself and escape any dangerous situation he found himself in.
No investor can stay mistake-free for long, and everyone makes bad decisions now and again. Good investors keep a journal of investment decisions and can look back and understand why a certain investment didn’t pan out. Learning to live with mistakes and living to fight another day is another trait of successful investors.
4. Knowledge Is Power
Maybe the most iconic quote of the series, “knowledge is power” was proven true in the finale, when Bran Stark was elected king by his fellow lords and ladies. The main reason for crowning Bran was his wisdom, as his three-eyed raven abilities has turned him into a living history book.
Knowledge is incredibly important when investing, and there are a multitude of numbers, facts, and ratios a person needs to be familiar with in order to invest successfully. Spending time learning to invest smartly will give you a better return on investment than anything you’ll ever spend time on. Acquiring the knowledge to help you navigate the markets wisely in order to achieve the results you seek is perhaps the single most important of the Game of Thrones investing lessons.