Germany won the FIFA World Cup in 2014.

But why did it crashed out in the first round of FIFA World Cup 2018?

This event was quite shocking to German fans across the world.

When you analyze closely, a trend has followed, whereby, the winner of the previous World Cup gets eliminated in the initial rounds of the present World Cup.

Lets Take a Closer Look at This Trend

Country Winner Next world cup result
France 1998 2002 – First round eliminated
Italy 2006 2010 – First round eliminated
Spain 2010 2014 – First round eliminated
Germany 2014 2018 – First round eliminated

5 Lessons to Learn from Germany’s exit in the FIFA World Cup


Lesson 1: Always Have a Plan B

Not probable and Not possible might sound similar, but there’s a thin line of difference.

Germany’s defeat in the first round indicates that things may go wrong when you least expect them.

Similarly, when it comes to investment planning while creating a portfolio of instruments, always ensure you have a Plan B in place for your specific objective.

This ensures that your objectives are not hampered, despite the fact that your investment plan did not chart out as expected

Lesson 2: Analyze Every Step

Germany started off on a frail note, when they lost to a comparatively weaker opponent like Mexico.

As the game progressed, mistakes of the previous game hovered and the country got eliminated much early against what their fans would have thought.

Similarly, in the investing world, before you enter the market, make sure you plan before you start investing.

Remember, not all losses can be recovered fully just by holding onto the stock and/or fund or any other investment instrument.

Lesson 3: Aggression and Planning are the Two Sides of the Same Coin

If you carefully observe Germany, you can notice that they lacked their usual aggression

Let’s put the same theory to use.

In the investing world, we believe that success in investing comes when aggression is mixed with a sense of strategy.

Any decision made in haste, can turn waste. Always have an investment objective and strategy in place and use an investment philosophy to achieve your financial objectives.

Lesson 4: Don’t Get Carried Away With Success

Each of us takes pride in our achievements.

And why not?

These laurels are a result of hard work.

However, resting on laurels for a long time, results in casualness that overcomes an individual.

We will believe this is what happened with Germany. And we can see the results now.

Similarly, when you are investing in a business or you invest in yourself, never harp too much on your past performance, if it has been strong.

Remember, each day is a new beginning and should be fought as a challenge. As they say – Past Performance is not a reflection of future returns and considering it to be a benchmark may lead to a blunder.

Lesson 5: Hope Is a Starter, Action Is what Matters

Germans, in general, are known as doers and typically believe in action.

However, this trait was missing during the World Cup.

For the first time ever, this team had given up on action and seemed that they were hoping for a miracle to happen. This is definitely not the sign of a Champion.

A similar rule applies to investments. A successful investor works hard, puts in time, effort, analysis to generate profits but seldom depends on luck.

Remember, as an investor, if you go wrong, always introspect and take corrective measures.

Action Speaks


Having covered a few crucial lessons from Germany’s defeat this World Cup, let us highlight that we all have few a strong funds/stocks in our portfolio, that have the ability to perform consistently.

But should there be a situation when your portfolio is underperforming, don’t lose hope. If you believe in the fundamental thesis behind your investment. Stick to your philosophy and your portfolio shall bounce back.

Happy Investing!

Disclaimer: the views expressed here are of the author and do not reflect those of Groww.