Investment lessons I learned from Pokemon Go(5 min read)

[dropcap]P[/dropcap]okemon go a location based augmented reality game released in July 2016 and is downloaded by more than 500 million. It uses mobile device’s GPS ability to locate, capture, battle virtual creatures called Pokemon. People literally have to run on the roads in search of the Pokemon.

I have played this game for some months now and reflecting the time I have passed. It has sharpened my skills and I have realized that I have taken away much more than I expected.

Imposing the skills and knowledge I acquired from the game into my investment strategy helped me to gain higher returns.

Here are the investment lessons I have learned from the Pokemon Go.

#1. Persistence

If you have ever played Pokemon Go, you know what it takes to find the Pokemon. Same way lot of efforts are required in searching of a right stock or fund. Sometimes it takes more time to find the right stock or fund, but you just never give up. Persistence is the key to success. “Never give up” attitude is what I learned from the game. Catching every Pokemon takes time and dedication. It requires persistence. The good part is the game is helping you to stay motivated by providing periodic rewards in form of gym badges and Eevee.

Keep this in mind when working towards your current investment goals. Sit down and figure out smaller “mini-goals” that you can achieve more quickly (quick wins) in order to keep your motivation high. Also, learn to recognize the spontaneous, unpredictable rewards (dividends) that come up and appreciate them.

#2. Be organised

The game teaches how to organize each box by creature wise that help you to locate them quickly when required. Likewise, I am organizing my investment portfolio in the same fashion. I have my portfolio type wise, segment wise, value wise and even the script wise. This way I can have a quick view on all type of investment in different buckets.

Do you know your net worth? If not then do it right away. You will know how to organize your portfolio.

#3. Timing

Timing is the very important aspect of this game. The game teaches me that time is a scarce and valuable resource. The game runs on a clock system and has night and day like real life. I quickly decide what I have to do if I have a time crunch. I map out the quickest way to achieve my goal of the movement, which involved training Pokemon to go one level higher.

Time management helps me to decide what action I need to take with my investment when I have less time? This includes choosing a right investment avenue for short term goals. I take liquidity, exit load, past performance into consideration while choosing a short term investment.

#4. Decision making

One of the biggest things that will help in the game is learning how to be decisive. This includes building a team or choosing a right investment advisor. Very serious stuff. Your choice impacts a lot of initial game play. Likewise, choosing a good advisor to help me in going to my next level of investment. One wrong decision on my investment will put me off track of the goal. I contemplate all the possible combinations and chooses the best one which fits my goals.

So an ability to choose what you want is actually really important in the game as well as in the real life.

#5. Improve your knowledge

As I play the game I was trying to catch every Pokemon. But gradually I learned that it varies based on the location, version etc. I have discussed it with my friends and also search some user manuals on the internet in order to understand how it works and how can I excel in the game.

There is a solution to every problem in the world. Implement this in real life, be willing to look outside your immediate surroundings for answers. There are times when it’s hard to get a solution out of the limited knowledge we have. So it is better to learn from the outside sources like subject experts, google etc. I literally became google ninja from finding a meaning of ETF to understanding Bitcoin and block chain. Now it becomes my habit to find out a solution for anything from outside resources like google.

#6.  Networking

There are some battles in the game which requires a team. You and the other person’s mutual interest helped to win the battle. You might have even made long term friends.

Networking is so important, and it becomes so much easier when there’s a mutual point of interest between you and the person you’re meeting. So meet people of the same interest. If you want to acquire new skills on investment, be in touch with the people who are experts in that domain.

I have been gone through such situation where I was having some extra money and I was thinking of pre paying my home mortgage loan. One of my friends who is a certified financial advisor told me not to pre pay my loan but instead of investing it into mutual funds. He explained me the risk and reruns of mutual funds. I learned arbitrage that day. Thanks to him I am earning 18% CAGR returns on my funds as on date. Which is 8% higher than my mortgage loan interest.

# Bonus lessons

  • You can’t judge a duck by its cover
  • Go and you shall find
  • Go where the wind takes you
  • You are, who you are, embrace it
  • You can be a shining star
  • There is a strength in numbers
  • You can conquer your fear
  • You can change
  • Things aren’t always what they seem to be
  • You can be anything you want to be
  • There will always someone better than you, and that’s okay
  • Keep going and nothing can stop you
  • No dream is too big

Every game teaches us some lesson. It makes us a better person as we go in depth of it. Share if you learn any other lesson from Pokemon Go.

Leave a Reply

22 thoughts on “Investment lessons I learned from Pokemon Go”