Klopp it

Dominic Thomas
April 2024  •  4 min read

Klopp it

Klopp’s kids beat a Chelsea team that cost a billion to win the League Cup final, confirming belief that Jurgen Klopp is a marvellous manager, one that Liverpool should not let go. I think you would agree that this probably fairly reflects the sentiment across most media platforms following Liverpool’s 1-0 victory over Chelsea.

If you don’t like football, like Ted Lasso, this is not really about football. Stay with me.

Any manager has to select players from his/her squad from those available (not injured).  Jurgen Klopp selected a team based on his own criteria, but suffice to say not all the regular stars were available due to injury. As a result, he had to look beyond the familiar, to the rising stars, untested for a big occasion. By the end of the match which predictably went into extra time, there were five Liverpool players under the age of 20 on the pitch bringing the average age of the 11 on the pitch to under 22.

There has been much praise for this bold approach and the legacy that the departing manager will have provided, a future that looks exceedingly bright. Credit where it is due, it was indeed an impressive result, though I think it fair to say that Chelsea are not at their best. However, the ages of players, cost and who won are not the issues here.

The tendency of the media is to move towards extremes, failing to retain a level head, seemingly stuck in an adolescent state of black or white. Much is being made of the success of Liverpool’s youngsters with euphoric sentiments about the future.

It is perfectly possible that Liverpool’s young players go on to have very successful (trophy winning) careers, but it also depends on undeniable luck. Skill as an athlete is the entry price, but luck will often feature. I mean luck in avoiding injury, having sufficient stability, opportunity to play. Typically players retire at around 35. James Milner is currently 38 and playing for Brighton, having moved from Liverpool at the end of the last season. He is one of the oldest and most successful premier league players. He was born in 1986 and his six minute Boxing Day debut for Leeds made him the second youngest premier league debutant, just nine days before his 17th birthday. Milner has won lots and has the second highest number of Premier League appearances and is closing in on the record of 653.

Milner, like most athletes, does what he can to ensure he stays fit and skilled, but he has also been lucky with his fitness that has enabled him to continue playing and moving between teams that have a real prospect of winning (Manchester City and Liverpool since 2010).

Football pundits and commentators tend to forget luck, they forget survivor bias and often make statements with such a degree of certainty as a voice of authority, that many or perhaps most assume them correct. In the end they may be, but it’s unknown and bluntly, unlikely.

Investing is the same. We all see charts on billboards, newspapers or the internet showing how wonderful a particular investor is. There is no guarantee at all that this will continue or be repeated. Certainly they may have a good succession program in place, or assistants making the results more collaborative, but the truth is that we simply don’t know how much was luck and good health (investment managers also get ill, cancer, stroke, mental health issues and so on). Many or most investors elect for the belief that it is possible to consistently beat the market … denial of reality is a thing.

When James Milner made his debut at Leeds in 2002, Liverpool’s most successful period was already in decline, indeed they had never won the Premier League in his entire career until he helped them do so in 2020 some 30 years since their last League win (a record that their arch rivals Manchester United hope they do not match, but are now approaching halfway).

Sport is fickle, so is investing. As much as we would prefer not to acknowledge it, preferring to believe that we make our own luck – or where opportunity meets preparedness. Luck is part of the reality.

That’s why we avoid costly investment strategies that rely on the luck of a Manager. Over a reasonable time, one that is the real experience of investors like you, only about 5% of managers beat the market. So are you willing to bet your family’s wealth in 2024 on who they will be by 2044?… and pay a hefty premium for the privilege?

No, neither are we. At this point I cannot even tell you who will win this season’s Premier League which is over halfway through and concluding this Summer …

Klopp it2024-04-04T15:15:37+01:00

Film Stars Don’t Die in Liverpool

Film Stars Don’t Die in Liverpool

I have been enjoying several films at the BFI London Film Festival. One that stood out for me was “Film Stars Don’t Die in Liverpool” which is adapted from the book by Peter Turner. It tells of the unusual relationship between a young Peter Turner and former film noir femme fatale, who most are likely to have seen but perhaps not remember – Gloria Grahame.

Grahame’s career in film began with a small part in “It’s A Wonderful Life” you may recall how George Bailey gives Violet Bick funds to escape the small town and make a name for herself elsewhere. She won an OSCAR for her role on The Bad and the Beautiful and performed with some of the leading lights of the 1950s.

In A Lonely Place

The film is based on her encounter and 2-year relationship with Turner, who she initially meets in London whilst back treading the boards. Then in her mid-fifties, divorced 4 times and surrounded in scandal she begins a relationship with Turner, who at 27 wasn’t even born when Grahame had completed work on The Bad and the Beautiful. We are shown brief insights into her chaotic world and the scandals that inevitably ended her career in film. Her last husband, Anthony Ray, was her stepson (from her second husband) and the marriage lasted from 1960 until 1974 resulting in two children.

A Woman’s Secret

The film implies that Grahame was pretty much financially ruined, appearing to possess a mobile home / caravan on the Californian coastline. Perhaps because of 4 divorces or a career that was cut short, or even because of illness, but clearly the glamour and glitter of her star had burned out. (Spoiler) Ultimately her life is cut short due to a recurrence of cancer, though this is fairly evident as the likely outcome from the start of the film, so I’m not really spoiling it for you.

Odds Against Tomorrow

There are some broad financial lessons here. The audience laughter at a scene where two pints of beer are ordered for 90 pence, was probably the loudest in a film that clearly isn’t designed to be funny; but the long-term impact of inflation is not really the most obvious lesson here. Fame that brings financial success can be very short-lived. Life as an actor can be very harsh. Divorce is financially expensive, but of course the toll on emotional reserves may also be overwhelming. Love and tenderness are often found in unexpected places and whilst care costs, it may not have a monetary price. In a world of appearances many are in danger of making similar “mistakes” or having similar experiences.

The Cobweb

Financial protection is a modern-day (or should that be post-modern?) wonder for those without capital – providing financial stability in the event of life presenting “challenges”. Running out of money isn’t as bad as running out of time, but it’s probably a pretty close race. A proper financial plan will help reveal where your resources are and what you can do to sure them up. It enables you to take a look at the future and make some adjustments in advance if you don’t like the prospects.

Here’s the trailer for the movie, which reunites Jamie Bell and Julie Walters, this time as mother and son, whilst Annette Bening gives a great performance as Gloria Grahame.

Dominic Thomas
Solomons IFA

You can read more articles about Pensions, Wealth Management, Retirement, Investments, Financial Planning and Estate Planning on my blog which gets updated every week. If you would like to talk to me about your personal wealth planning and how we can make you stay wealthier for longer then please get in touch by calling 08000 736 273 or email info@solomonsifa.co.uk

Film Stars Don’t Die in Liverpool2023-12-01T12:18:22+00:00
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