5 money lessons from Ronaldinho

Football fever is in and only getting hotter. Big screens, friends getting together, some beer flowing freely. . .if those are the images that this World Cup brings to you, this might be a good time to do some learning.

Brazilian footballer Ronaldinho is a great player and also arguably the favourite of the World Cup. While you watch his game, what you could also do is take some tips from his style and apply it to other facets of your life, in this case, your personal finance.

1. Direction, a must

Ronaldinho first creates the goal in his mind, even before he has the ball; even before he is anywhere near the goal post. This enables him to move with purpose and try and execute the strategies that the team would have planned beforehand.

Without such a clear-cut vision, the ball just gets hit around -- with no sense of direction, no sense of purpose. Direction is important, both for a footballer and an investor.

One of the important requirements for success is to have a clear-cut objective, a well-defined goal. Instead of saying 'I want to be rich', one should be saying, 'I want to have Rs 50 lakh (Rs 5 million) in the next 7 years' or some such well-defined goal. The desired goal then defines the strategy one should adopt; the path one should follow -to make the vision a reality.

2. Seize the right opportunity

While the opposition attacks Ronaldinho, he is looking for gaps. His agile mind and body then move with lightening speed to seize such opportunities. The imaginative passing and sublime dribbling is simply breathtaking.

Today's financial world has also become very fluid and dynamic. The changes are more frequent and more dramatic. Therefore, if one fails to act quickly, one could either end-up with huge losses or miss out on golden opportunities.

Yes, the vision is long-term. But the paths that one would have to follow to reach that goal would change with times. No single path will take you to the proverbial golden pot at the end of the rainbow. And this requires agile and open mind.

3. Be your own master, in total control

The awesome control and perfect balance of Ronaldinho are well known. These are qualities are a must. They complement agility. Too agile a mind and body could trip and fall, unless it is tempered by right amount of balance and control.

There is no need to rush headlong the moment an opportunity arises. It is important to weigh the pros and cons. Many times what seems to be a great opportunity may not actually be so. Taking due care and diligence is equally important as moving fast. The balance between the two makes for a great investor; else one could end up being on the losing side.

4. Take losses in stride

Of course, Ronaldinho does not underestimate the opposition. He knows when to retreat and lie low, before embarking on another attack. Sometimes you may not find the right opportunities to invest. At such times, one should remain in cash and wait. Opportunities come and go.

Investing is a long-term game. So if one is sitting on cash even for 2-3 months, one should not get anxious. The recent correction should teach us a lesson. We all knew that the markets were overvalued and it would have been prudent to wait. But with the markets making new highs non-stop for almost 4-5 months, greed overcame caution. And many of us had to pay a price for that.

Ronaldinho also takes goals scored on his team as part of the game. He learns from them rather than mourning about it. We should also be take losses in our stride. Making money every time is not possible. Losses should spur and motivate us to improve ourselves, rather than be de-motivated and run away from the market. Market is a great leveller. It will give us opportunities to recover our losses and make money. So one should not despair and be patient.

5. Relish the victory

And last, but not the least, is the sheer delight or enjoyment with which Ronaldinho plays his game. He simply loves playing. His permanent smile is so infectious. There is no apparent pressure to perform. Yes, winning is important. But more important is the enjoying the game.

There are many more things in life than just football or money. Therefore, obsessive attachment with making money spoils the very fun of money. Money should be 'happily' earned and 'happily' enjoyed.

Finally, here's wishing Ronaldinho a great World Cup 2006 and you too for your investment game.

The author, Sanjay Matai, is an investment advisor. He can be reached at sanjay.matai@moneycontrol.com

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