If Warren Buffett Played Fantasy Football, This Is Who He’d Draft

We’ve all been there, at the end of another losing Fantasy Football season, handing over our money in shame and wondering where it all went wrong. As this is prime Fantasy draft season, now is the time to ask ourselves: have we been properly evaluating the players we “invest” in on our team? Is there a better way?

If we think of our teams like investments (which, by the way, they technically are if your league has a buy-in), we should be able to glean some drafting insights from the master of investing himself. Let us consider…who would Warren Buffett draft?

The Sleeper: Buy Low, Sell High

RGIII

If you’re anything like me, you rely heavily on ESPN rankings and last year’s performance when drafting players. The top ranked players usually get picked first, right? In a way, though, this is akin to purchasing shares at their peak prices.

Maybe it’s time to rethink this. After all, people don’t usually get rich by buying only the most expensive stocks. Buffett, a preacher of value based investing, would probably advise us instead to draft players with high potential but low prices.  He’d want us to look for “sleeper” picks in later rounds who are likely to perform well.

Perhaps the best example of this last year would have been those lucky souls that drafted Robert Griffin III. This is something I did, because I am a Fantasy Football savant. Also because I was appeasing my Redskins fan of a boyfriend, but mostly because I am a savant. Anyhow, as an unproven rookie RGIII was drafted, on average, in the 8th round of Fantasy Leagues last year. By week 15, however, he had scored more fantasy points than all but one other player (Tom Brady). Can you say value investing? That pick has Berkshire Hathaway written all over it.

The Veteran: Trust Pedigree

Peyton Manning

This year, I plan on drafting Peyton Manning, starting Quarterback for the 2014 Superbowl Champion Denver Broncos. [ed. Note: I am from Denver.] I’m taking my cues here from Warren Buffett, who favors long term investing, and continually trusts outstanding companies to continue performing years on end.  Take his stock in the Washington Post, for example. Buffett’s first shares in the Post were purchased in 1973. As of early August, 40 years later, these shares totalled 1.7 million and were valued at $1.01 billion.  Decent return, no? Think of all the Papa John’s pizza he could buy from Peyton with that money.

I bought stock in Peyton Manning long ago, because a solid SNL hosting appearance is one of my key performance indicators. Like Buffett, who refused to waver when newspapers started to migrate online, I chose to stand strong after Peyton’s neck surgery. Or, as I like to refer to it, Peyton’s “Neck Rejuvenating Sabbatical Before Leading the Broncos Back to Glory.” This year, I expect the Manning sector will continue to be one of the strongest in my portfolio.

The Return from Injury: Invest at a Discount

Adrian Peterson

Did you draft Adrian Peterson last year? When you inevitably won your league, did you send him an enormous Edible Arrangements bouquet? Or at the very least, a thank you tweet? Lord knows he deserves it; that young man ran many many yards for you, and scored 12 touchdowns along the way. What’s more, you drafted him, on average, as the 21st selection. He finished the year as the first overall Running Back. Give yourself a pat on the back for wisely investing in Peterson at a pretty great discount.

This is something Warren Buffett knows all about, considering his investment in Visa directly after its stock price fell. Today, he continues to invest in Visa and its credit card counterparts American Express and Mastercard, all three earning quite well. Although Visa was down for the moment, Buffett trusted its strong brand and growth prospects when deciding to invest.

After all, Buffett’s philosophy teaches us to look ahead, not behind, for good investments. In his own words, “Investors should be looking to companies that will have good value in ten years.” Based on his time frame here, we can assume Warren is in a keeper league. But those of us who have only a ten week time frame can still take his advice to heart when drafting. We should try to overlook short term injuries in favor of long term fantasy returns. Peterson’s performance in 2012 was the perfect example; he was everywhere you wanted him to be! (Ahem, the endzone.)

Unfortunately the cat’s out of the bag on Adrian Peterson for this season. Zoom! That was him flying off the board as the first pick. But there are others returning from injury that might be worth your discounted investment. LeSean McCoy, perhaps. Or Rob Gronkowski, for example.  And if you’re truly courageous/crazy, maybe even Michael Vick. Maybe. You know, depending on your acceptable level of risk.

The Investing Fantasy Football Guru

Warren Buffet draft

The Fantasy Football season is a long one, with countless hours spent hoping your receivers stayed inbounds and agonizing over lineup decisions. If you’re investing that much time and energy into the process you might as well try to maximize your returns. So when you log on to draft this weekend, heed the master’s advice. “Buy Low” when you can, trust your veteran performers, and look for discounts. And if possible, always try to grab RGIII. That’s how Warren Buffet would draft, anyway.

Who are you looking to draft (or invest in) this year? Let us know in the comments section below. 

January 2, 2021 Update: We have just announced our BEST STOCK NEWSLETTER of 2020 AWARD!

CLICK HERE to find out which stock newsletter was up 78% in 2020 (and whose 2019 picks are now up 113%).

*** Our Award for BEST STOCK NEWSLETTER of 2020 ALERT ***

Updated January 2, 2021

At WallStreetSurvivor, we subscribe to dozens stock recommendation and advisory newsletters. There is ONE newsletter that is constantly outperforming all of the others--The Motley Fool Stock Advisor.

Five of their 2020 stock picks have doubled and the average return of all 24 of their stock picks for 2020 is up 78%!

We have been tracking ALL of the Motley Fool stock picks since January 2016. That's 5 years and 120 stock picks. As of Friday, January 1, 2021 the Motley Fool's January stock pick (TSLA) is up 720%, their March pick (ZM) is up 172%, their April pick of SHOP is up 226% and their June pick CRWD is up 120%; and another two have more than doubled. In addition, 10 of their 2019, 12 of their 2018, 11 of their 2017, 15 of their 2016. Most impressively, over the last 5 years that we have been tracking every recommendation, their average stock pick is up 209%--tht means over the last 5 years their stock picks, on average, have TRIPLED!

Now no one can guarantee that their next picks will be as strong, but our 5 years of experience has been super-profitable. The important thing about the Fool stock picks is you have to buy them the day they are recommended because they usually pop 5-10% in the first 72 hours after the release their recommendation. You sure don’t want to risk missing out on their next pick.

Normally the Fool service is priced at $199 per year but they are currently offering a NEW SUBSCRIBER DISCOUNT that allows you to get theiir next 24 stock picks for just $99/year. HERE is the LINK to visit their New Subscriber Discount page.

CLICK HERE to get access to all The Motley Fool’s Stock Picks and their next 12 months of picks for just $99 per Year! 



GET UP TO $1,000 IN FREE STOCK

WHEN YOU OPEN A ROBINHOOD BROKERAGE ACCOUNT

Robinhood was the first brokerage site to NOT charge commissions when they opened in 2013. They just past 10,000,000 accounts and to celebrate they are offering up to $1,000 in free stock when you open a new account.

Here’s the details: You must click on a special promo link to open your new Robinhood account. Then when you fund your account with at least $10, you will receive one stock valued between $5 and $500. Then, you will get a link to share with your friends. Every time one of your friends opens an account, you will receive another free stock valued between $5 and $500. Click here to learn more about this Special Robinhood offer.

Claim your free stock NOW (before it’s too late)



Comments are closed.