What Your March Madness Bracket Can Teach You About Smarter Investing

As brackets are being filled out across the country, I'm struck by how similar the tournament selection process is to building an investment portfolio. Both require strategy, discipline, and yes—managing our emotions.

5 Investment Lessons Hidden in March Madness:

1. The Perfect Bracket Myth - Just as no one has ever completed a perfect bracket (odds: 1 in 9.2 quintillion), chasing perfect investment timing is futile. Success comes from controlling the controllables: diversification, cost management, and proper asset allocation.

2. Last Season's Success Is History - The defending champions often falter the next year. Similarly, yesterday's top-performing funds frequently underperform going forward. Past performance truly doesn't predict future results.

3. Watching Too Closely Breeds Poor Decisions - The more you watch market fluctuations (or tournament games), the more likely you are to make emotional rather than rational choices. Distance provides perspective.

4. Evidence Over Emotion - We all want our alma mater (Go Terps!) to win it all — but smart bracket pickers (and investors) use evidence and probability rather than emotional attachments to guide decisions.

5. Everyone Needs a Coach - Championship teams have elite coaches who provide strategy and emotional stability. A skilled financial advisor serves the same role for your investment portfolio.

What parallels do you see between your bracket strategy and your investment approach? And more importantly—who's your Final Four this year?

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The opinions voiced in this material are for general information only and are not intended to provide specific advice financial or tax recommendations for any individual.

All performance referenced is historical and is no guarantee of future results.

All indices are unmanaged and may not be invested into directly.