Becoming a Successful Athlete and Investor: How One Might Help with the Other

7 years ago

  • Share this:

Many of our employees deserve recognition for their hard work, dedication, ability to problem solve and help us reach our goals, but two of them have something unique in common that we have seen translate to their work time and time again. Santiago Munoz and Andrew Henn both came to Cabana as Division I athletes, and Honor Roll and Dean’s List students majoring in Finance at the University of Arkansas. This made us think. What is it about these two that makes them so dedicated and so surprisingly insightful at such a young age in this industry? Well, we asked them. What did we find out? Being an athlete might have a lot more to do with investing than we thought. Check out what they have to say about it!

“I can’t remember a time before tennis in my life. I loved it, even when I disliked it the most, including bad losses, excruciating workouts, and injuries. Was it worth it? Every single second…”

-Santiago Munoz-

“Athletics have been a big part of my life. I can promise you, I, and every other person, does not win at every little thing they do. But that’s the joy in it; it keeps you hungry to go out and do your best, day in and day out”.

-Andrew Henn-

Being a Division I athlete is certainly something we are proud of, and we like to think we didn’t get there by chance. At a young age we picked our sport and we found someone with the tools to guide us, teach us, and put us on a path toward our goals: a coach (several for that matter). We practiced hours and hours, and then we showed up to our first competitions, and a lot of times it didn’t go so well. At first, as a kid it’s hard to see the big picture. You are left wondering how you put all that time and effort into practice to get such a terrible result – and that can become frustrating. We would also get good results sometimes, and the cycle kept repeating itself year after year with both good and terrible experiences. By the time we were teenagers, we learned that there is always something to take away from a defeat, and the path starts to become more clear. With time and experience, better results came our way, and the payoff for our hard work became more tangible. We started to realize why it was worth all the pain and frustration. We set goals and we came to find out how good it felt to reach them. But there were also more powerful influences making us question why we did this. Why were we giving up parties, and friends, and relationships, and all sorts of things kids our age were enjoying? It was nearly impossible without our coaches, friends and family that pushed us to just trust the process. A few years later, a lot of missed parties, early mornings and late nights, we became Razorbacks, competing at the highest level of college athletics. In a sense, we “made it.”

So why are we telling you all of this? Because believe it or not, there is a direct correlation between our journeys as athletes and our journeys as investors. Let me explain: to start, as an investor you should surround yourself with people that dedicate their lives to teach and guide you through the process, people that are professionals on the subject: your financial advisors. Second, it is easy to be skeptical at first and let any hiccup in the market discourage you and make you wonder if it’s worth continuing to invest. But investors – do not let that break you; you cannot quit. Under the right strategy, and with the right people guiding you, you could achieve what millions of people cannot: provide for your loved ones and reach retirement the way you want to! But just like running track or playing tennis, you have to trust the process. You have to have the discipline to push through when things are not going the way you want them to. Stay invested and stick with it!

Need a coach? Or just someone to talk to about investing? Give us a call.

Santiago Munoz and Andrew Henn

 

Disclaimers:
 

By using this website and or blog, or making a purchase, user agrees as follows:

All written content on http://cabanaportfolio.com website (the “Website”) is for informational purposes only. The material presented is believed to be from reliable sources and no representations are made by CABANA, LLC (d/b/a “Cabana Asset Management”), Cabana Law Group, or Cabana Financial, LLC (collectively, “Cabana”) or its affiliates as to another parties’ informational accuracy or completeness. All information or ideas provided should be discussed in detail with an advisor, accountant or legal counsel prior to implementation. No party, including but not limited to, Cabana and its affiliates, assumes liability for any loss or damage resulting from errors or omissions or reliance on or use of this material.

The views and opinions expressed are those of the authors do not necessarily reflect the official policy or position of Cabana or its affiliates. Any content provided by our bloggers or authors are of their opinion, and are not intended to malign any religion, ethnic group, club, organization, company, individual or anyone or anything.

Information presented is believed to be current. It should not be viewed as personalized investment advice. All expressions of opinion reflect the judgment of the authors on the date of publication and may change in response to market conditions. You should consult with a professional advisor before implementing any strategies discussed. Content should not be viewed as an offer to buy or sell any of the securities mentioned or as legal or tax advice. You should always consult an attorney or tax professional regarding your specific legal or tax situation.

Viewers or recipients of the information herein that do not agree with the term and conditions of use, should not utilize this website or any information contained herein. Decisions based on information contained herein are the sole responsibility of the person viewing the website. In exchange for utilizing the information on this website, the visitor agrees to indemnify and hold Cabana Asset management, its officers, directors, employees, affiliates, agents, licensors and suppliers harmless against any and all claims, losses, liability, costs and expenses (including but not limited to attorneys’ fees) arising from the use of this website, violation of these terms or from any decisions that the viewer makes based on such information.

Disclaimers

January 17, 2024

This material is prepared by Cabana LLC, dba Cabana Asset Management and/or its affiliates (together “Cabana”) for informational purposes only and is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. This material may only be distributed in its original format and may not be altered or reproduced without the prior written consent of CabanaThe opinions expressed reflect the judgement of the author, are as of the date of its publication and may change as subsequent conditions vary. The information and opinions contained in this material are derived from proprietary and nonproprietary sources deemed by Cabana to be reliable, are not necessarily all-inclusive and are not guaranteed as to accuracy. As such, no warranty of accuracy or reliability is given and no responsibility arising in any other way for errors and omissions (including responsibility to any person by reason of negligence) is accepted by Cabana, its officers, employees or agents.  

“CARA” is Cabana’s Cyclical Asset Reallocation Algorithm. Scenes assigned as per the judgment of The Cabana Group. Scene names and number of scenes have changed over time in an effort to obtain efficiencies and provide clarity of investment objective. 

This material may contain ‘forward looking’ information that is not purely historical in nature. Such information may include, among other things, projections and forecasts. There is no guarantee that any forecasts made will come to pass. Reliance upon information in this material is at the sole discretion of the reader. Past performance is not a reliable indicator of current or future results and should not be the sole factor of consideration when selecting a product or strategy. All investment strategies have the potential for profit or loss. All strategies have different degrees of risk. There is no guarantee that any specific investment or strategy will be suitable or profitable for a particular client. The information provided here is neither tax nor legal advice. Investors should speak to their tax professional for specific information regarding their tax situation. Investment involves risk including possible loss of principal.  

Cabana LLC, dba Cabana Asset Management (“Cabana”), is an SEC registered investment adviser with offices in Fayetteville, AR and Plano, TX. The firm only transacts business in states where it is properly registered or is exempted from registration requirements. Registration as an investment adviser is not an endorsement of the firm by securities regulators and does not mean the adviser has achieved a specific level of skill or ability. Additional information regarding Cabana, including its fees, can be found in Cabana’s Form ADV Part 2A or Form CRS. A copy of which is available upon request or online at www.adviserinfo.sec.gov/. 

Past performance is no guarantee of future results. All investment strategies have different degrees of risk and the corresponding potential for profit or loss. Asset allocation and diversification will not necessarily improve returns and cannot eliminate the risk of investment losses. “Target Drawdown” is merely a descriptive term used to describe the general strategy and objective of the portfolio, it is not a guarantee, nor should it be construed to suggest safety or protection from loss. There is no guarantee that portfolio performance will remain consistent with the targeted drawdown parameter. While risk tolerance and targeted “drawdown” are identified on the front end for each portfolio, Cabana’s algorithm does not take any one client’s situation into account and there is no guarantee that Cabana’s strategies will be suitable for any investor. Investors and advisors should not simply rely on the name of any portfolio to determine what is suitable. It is the responsibility of investment advisors to determine what is suitable for their clients. Cabana manages assets on multiple custodial platforms. Performance results for specific investors will vary based upon differences in associated costs and asset availability.  

Cabana claims compliance with the Global Investment Performance Standards (GIPS®). GIPS® is a trademark of the CFA Institute. The CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein. To receive a GIPS Report and/or a firm’s list of composite/pooled fund descriptions please email your request to info@thecabanagroup.com.

All recommendations made in the prior 12 months are available upon request. Cabana’s allocation history is available here. For additional information regarding our services, including performance disclosures and award methodology, please visit https://thecabanagroup.com/disclaimers/. 

Commonly used index/benchmark definitions:  

All indices and categories are unmanaged and an individual cannot invest directly in an index or category. Index returns do not include fees or expenses. Benchmark indices will likely materially differ from Cabana’s portfolio strategies. Detailed information as to how the returns are calculated can be obtained online from the following link: https://thecabanagroup.com/disclaimers/performance-reporting-methodology/. 

Morningstar’s Moderate Target Risk index  follows a moderate equity risk preference and is based on well-established asset allocation methodology from Ibbotson Associates, a Morningstar company.  

Morningstar’s Tactical Allocation category includes portfolios that seek to provide capital appreciation and income by actively shifting allocations across investments. These portfolios have material shifts across equity regions, and bond sectors on a frequent basis. 

The S&P 500 Index is a market-capitalization weighted stock market index of 500 widely held large-cap stocks often used as a proxy for the U.S. stock market.  

The Russell 2000 and 3000 indices are market-capitalization weighted stock market indices that include, respectively, 2000 and 3000 of the most widely-held stocks and are often used as proxies for the U.S. stock market. 

The Nasdaq Composite Index is a market-weight capitalization index that covers more than 3,000 stocks listed on the Nasdaq Stock Market. What is the Nasdaq Composite, and What Companies are in It? | Nasdaq