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@Mapfre<\/a><\/p>\n[\/et_pb_blurb][et_pb_divider show_divider=\"off\" _builder_version=\"4.9.4\" background_color=\"#D81E04\" width=\"107px\" max_height=\"5px\" custom_margin=\"20px||20px||true|false\" custom_padding=\"||||false|false\" locked=\"off\" global_colors_info=\"{}\" theme_builder_area=\"post_content\"][\/et_pb_divider][\/et_pb_column][et_pb_column type=\"3_4\" _builder_version=\"4.9.4\" _module_preset=\"default\" global_colors_info=\"{}\" theme_builder_area=\"post_content\"][et_pb_text admin_label=\"Content\" _builder_version=\"4.14.7\" _module_preset=\"default\" text_font=\"Open Sans||||||||\" text_text_color=\"#2D373D\" text_orientation=\"justified\" hover_enabled=\"0\" global_colors_info=\"{}\" theme_builder_area=\"post_content\" sticky_enabled=\"0\"]<\/p>\n
On Thursday, August 18, a rumor started circulating saying that Cristiano Ronaldo might sign with Borussia Dortmund<\/strong>. The German club is listed on the stock market and it is currently the largest position we've got in our fund based on the Behavior Economy, which also includes the Dutch AFC Ajax and the French Olympique Lyonnais. Our investment in listed soccer clubs comprises a total of nearly 13% of the portfolio, with Dortmund representing over half of that.<\/span><\/p>\n That\u2019s why I spent the afternoon reading articles with headlines along the lines of \u201cCristiano Ronaldo causes Borussia Dortmund shares to skyrocket\u201d. Curiously, apart from Real Madrid, it should be noted that the Portuguese star has also played in two other listed clubs: Juventus of Turin and Manchester United. So, if he were to go to Borussia Dortmund in the end, it would complete a hat trick of teams whose shares are listed on the stock market, a feat which no other soccer player in history has probably ever achieved.<\/span><\/p>\n Beyond the anecdote, the reaction on the financial markets to the rumor of the possible signing<\/strong> (which, by the way, was not as exaggerated as some headlines suggested) should give us cause to reflect on how investors behave under other circumstances<\/strong>. I\u2019m often asked at conferences how a particular signing affects my assessment of a soccer club. The answer is that it rarely ever does.<\/span><\/p>\n Bringing in one specific player will hardly have enough of an impact to alter our calculation of the value of a club. The most newsworthy signings, such as in this case, often generate a lot of noise and disproportionate reactions among investors, who rarely see their exaggerated expectations met.<\/em><\/p>\n<\/blockquote>\n In fact, the arrival of Cristiano Ronaldo himself to Juventus of Turin in 2019 and Manchester United last summer are a good example of what we\u2019re talking about. In both cases, the share price skyrocketed the day of the announcement, only to end up correcting to the previous level (or lower).<\/span><\/p>\n\n