10 Investing Lessons From $ATVI's Overwatch 2

Tracer from Overwatch 2 wearing circular goggles and holding two handfuls of US dollar bills
October 4th, 2022

1. Train the boring fundamentals.

Nobody is born with good aim.

And nobody is born able to read financial statements.

We spend dozens of hours learnings the basics, so that when it's game time, we can spend our energy focusing on strategy -- not the basics.

2. Know when to wait.

If you peek around the corner before your team is grouped up, you risk getting sniped by a stray arrow, and leaving your team vulnerable.

"Inactivity strikes us as intelligent behavior." - Warren Buffet

Sometimes the smartest move is to wait.

3. Different environments value different tactics.

A map with tight corridors, favors Reaper and his sawed off shotguns more than it does Widow and her sniper rifle.

An economy with rising gas prices, favors an oil well more than a meal delivery kit.

A an economy with rising gas prices, favors an oil well more than a meal delivery kit.

4. Don't overindex on what you find fun -- do what wins reliably.

Nobody wins tournaments running 100% Support.

You don't need your portfolio to be 100% Cannabis.

5. A trained eye lets you act with confidence.

When you see an ally take out the enemy healer, you know it's time to commit and push the advantage.

When you see a cash-flowing business at clearance sale prices, you know it's time to buy some shares.

The key is being able to see a discount on a quality company, as easily as you can see an opoprtunity to attack the enemy team.

Unfortunately, it's easier to see that an enemy healer is down, than it is to see that a good company will bounce back.

But spending time training & studying previous market cycles is a great way to train your "vision."

6. Strong players focus on process -- not outcome -- because good process makes good outcomes inevitable.

Even the worst player gets a lucky headshot every now and then.

Even the dumbest Wall Street Bettor gets a 500% return on his 10th call option.

Don't be fooled by flashes of excitement, or the dopamine of quick money.

Focus on long term results.

7. You perform best when you find the game more interesting than the rewards.

Players who find Overwatch inherently interesting, naturally spend more time practicing.

Investors who find businesses interesting, naturally spend more time reading 10-K Annual Reports.

If you find the gam.

8. The rules of the game favor the host, not the players

When the no-name Team GOATS shot up from obscurity all the way to rank 1, $ATVI patched the game to make GOATS weaker.

When banks were crashing in 08, regulators banned short selling, & The Fed started buying assets.

9. Fear is the enemy of rationality, rewards, and returns.

GOATS was super effective because their all-ins preyed upon fear -- anyone who tried to run for safety, ironically made themselves easy targets.

Everyone who panic sold their stocks in '08 is kicking themselves now.

10. Know the true price of every supposed "win"

You can land a bunch of fun shots -- but the enemy healer gets more chances to charge up their Ultimate.

You can make profitable short term trades -- but taxes today and capital losses next year can put you in the red.