At the library, the writer picked up an interesting book on sports teams – On  A Clear Day They Could See 7th Place Baseball’s Worst Teams  by George Robinson and Charles Salzberg, University of Nebraska Press, 2010. In professional sports, the team has two functions – one to make money for the owners and two to challenge and eventually win the cup of the league. Not all teams are equal, but if they are not winning what is their value to the fan? The book looks at 10 teams that had losses of over 100 games to see why they were bad? What can you learn from looking at the bad teams? Often bad teams are bad for reasons – the owners/management does a terrible job; the owners try to save too much money or not spend it on good talent? the talent pool relative to the other teams is average to mediocre in terms of too young and too old? people live off of past glories, not the the present ones? the teams losses games it could have one or they find a reason to lose?

Linking to dividend producing stocks one important lesson a book such as this teaches you it is relatively easy to go from a good club to a poor performing one. Companies that consistently are winners are rare and to be celebrated. This is why with the dividend companies that you own, you have to know their advantage – if it is a monopoly like position, what would take that monopoly away? If it very hard, even a poor management will make money, then ensure the management does not deviate too far from their winning business plan.

There are more questions than answers, till the next time – to raising questions.