STORY TOOLS

• E-mail story
• iPod friendly
• Printer friendly

Tell us about it

• What would you add to this story? Tell us what we missed.
• Do you have photos from this event? Documents we need to see? Share with us.
• Upload photos & videos
• More ways to get your stuff online and in the paper.

More Business

• Merchants pulling out all the stops to encourage Islanders to shop local
• Electronics tops Marco wish lists, but it’s not all
• LIVE BLOG: From more than a dozen grandkids to really early shoppers ... Black Friday swirls

Share and Enjoy [?]

“A politician thinks about the next election, a statesman thinks about the next generation.” -- Winston Churchill, English statesman

“Swifter, Higher, Stronger” is the Olympic motto. These talented and gifted athletes of the 2008 Summer Olympics remind us of the subtle life lessons we learn by taking part in sports. Dedication and discipline are fundamental requirements that breed strong athletes as well as investors. Olympic competition and investing are also alike in that they both require a touch of luck, and at times, nerves of steel too!

As a swimmer in my youth, our coaches told us to keep our heads down and swim hard all the way to the wall. Keeping his head down gave Michael Phelps the advantage he needed to win eight gold medals. If you’ve picked your head up lately you may have noticed the markets have kept sloshing between positive and negative territory all through the summer. Oil, precious metals and financials have been in the spotlight of volatility.

With precious metals and the Olympics both in the headlines, we wondered if the gold medals are 100 percent of real gold. A quick trip to the computer provides the answer; the last Olympic gold medals that were made entirely out of gold were awarded in 1912. Today each medal must be at least three millimeters thick and 60 millimeters in diameter and must be made out of 92.5 percent silver. The “gold” medal is then covered in six grams of gold. Michael Phelps walked away with eight “gold” medals worth a grand total of $191 each, depending on the current price of gold per ounce. The United States Olympic committee pays athletes $25,000 for a gold medal, $15,000 for a silver and $10,000 for a bronze.

It’s easy to miss the complex finances that take place behind the scenes. Michael Phelps swam his way to new world records in a $550 LZR racer speedo bathing suit and the cost of the entire Olympics show is estimated at approximately $44 billion. For comparison, the first modern Olympics in 1896 where held in Greece and cost $450,000. Only 14 nations participated in 43 events (no women participants allowed – what!?).

Because money was lacking to build a pool, all swimming events were held in the cold, open waters of the Aegean Sea off the Piraeus coast. Professional athletes were banned until the definition of “amateur” was debated in the 1970s. Now, even the most amateur of athletes can benefit financially. This year, 204 countries were competing in 302 events in 28 sports. Swimmers set their records in a $200 million “box of bubbles,” as the Water Cube natatorium has been called.

The money to support all of this, aside from ticket sales and licensing agreements, comes from the fees corporations pay to be involved. NBC Universal paid $893 million for exclusive U.S. broadcasting rights. In total, broadcasting rights revenue is estimated at $1.71 billion. Half of that goes to the International Olympic Committee, and half to the local organizing committee. Advertising revenue is expected to top $1 billion (and NBC expects more than $133 million in profits). Sponsorships from a dozen Olympic “partners” whose ads you’ve been watching – Coca-Cola (now in its 80th year of involvement), GE, Johnson & Johnson, Lenovo, McDonald’s and others – add up to more than $850 million. The host country bears the bulk of the costs.

Going for the gold requires hard work and a plan. There will be hurdles with plenty of ups and downs so know your strategy and pace yourself. Hold back a bit so you have something left to get you over the finish line. Staying ahead of the pack demands conviction and the courage to persevere.

The ability to tighten up your mind, focus and concentrate are attributes that make the difference between mediocre and outstanding in sports and in life. To improve overall performance we need self-examination and introspection to learn from our defeats. Injuries to athletes or poor earnings reports for investors can erase years of hard work. Understanding the severity of these situations determines if you’re in need of a new strategy, temporarily sidelined or out of the game for good. Successful athletes and investors are dedicated to a process.

---

Darcie Guerin, Financial Advisor & Branch Manager, Raymond James & Associates, Inc. located at 606 Bald Eagle Drive, Suite 401, Marco Island, and FL 34145 provides this article. If you have questions please contact Darcie Guerin via Email at Darcie.Guerin@RaymondJames.com. Phone (239) 389-1041, toll free (866)-343-0882 or at www.RaymondJames.com/Darcie.