By Atte Suominen – Founder & CEO at PADEL1969
Inspired by the thinking of Benjamin Graham’s The Intelligent Investor
Benjamin Graham’s The Intelligent Investor is hailed as the bible of value investing. Warren Buffett calls it “by far the best book on investing ever written.” The book’s timeless principles are not just for stock market enthusiasts—they can be adapted to any sector, including the growing world of padel. Here’s how smart, value-based investment principles can be applied to the padel industry.
1. Invest with a Margin of Safety
Graham’s core idea is to always invest with a margin of safety—buy assets for less than they’re worth to protect against unforeseen risks. In the padel industry, this means carefully evaluating the value of a club, court, or brand before investing.
Application in Padel:
- Avoid overpaying for trendy padel projects without proven demand.
- Analyze property prices, expected revenue, and realistic usage rates before building or acquiring courts.
- Factor in operational costs, seasonality, and competitive saturation when calculating potential returns.
2. Understand the Difference Between Investing and Speculating
Investing is based on thorough analysis and long-term prospects; speculating is gambling on short-term trends. Padel has seen rapid growth, but not all opportunities are created equal.
Application in Padel:
- Don’t invest just because padel is “hot”—evaluate long-term viability.
- Look for sustainable business models with loyal customer bases, not just hype-driven ventures.
- Focus on fundamentals: location quality, operator experience, and customer retention.
3. The Intelligent Investor Is Patient and Disciplined
One of Graham’s golden rules is to avoid emotional decision-making. Intelligent investors stay calm during market volatility and stick to their investment principles.
Application in Padel:
- Don’t rush to build or expand—scale at a pace supported by demand.
- Be disciplined about expenses, staffing, and maintenance.
- Maintain liquidity to weather slow seasons or unexpected costs.
4. Know the Business You’re Investing In
Graham emphasized deep knowledge of the companies you invest in. In the padel space, this translates to understanding the sport, its market dynamics, and your target audience.
Application in Padel:
- Get involved in the sport: play regularly, attend events, talk to players.
- Understand different customer segments: competitive players, social groups, families, and corporate clients.
- Stay informed about trends such as padel tourism, coaching academies, and international expansion.
5. The Market Is There to Serve You, Not Instruct You
Graham’s famous analogy: the market is like a moody partner named Mr. Market. Sometimes he’s optimistic, sometimes pessimistic. Intelligent investors take advantage of market fluctuations rather than being swayed by them.
Application in Padel:
- Use downturns in the market to acquire undervalued clubs, land, or equipment.
- Don’t panic if short-term interest in padel dips—focus on long-term trends.
- Exit or expand based on logic, not emotion.
6. Focus on Intrinsic Value, Not Popularity
Popular doesn’t always mean valuable. Graham urged investors to focus on intrinsic value—the true worth of a business based on its fundamentals.
Application in Padel:
- Evaluate clubs based on cash flow, member retention, and operational efficiency.
- Prioritize partnerships with solid management and transparent operations.
- Avoid overhyped brands or franchises that lack substance.
7. Diversify Intelligently
Graham recommended diversification to reduce risk but warned against over-diversification. In padel, this could mean spreading investment across different regions, formats, or verticals—but with intention.
Application in Padel:
- Invest in a mix of urban and resort locations.
- Consider verticals like coaching, events, equipment, or digital platforms.
- Avoid taking on too many scattered projects without synergy or focus.
Conclusion: Value Investing Meets Padel
The Intelligent Investor teaches timeless lessons: be rational, value-driven, and long-term in your thinking. Applied to the padel sector, these principles can help investors avoid hype, minimize risk, and build sustainable value. Whether you’re building courts, launching a padel brand, or expanding internationally, channeling Benjamin Graham’s wisdom can turn a good opportunity into a great one—with staying power.
Need advice about in investing in Padel sector?
Book a call with us if you want to build a Padel court and don’t know where to start, or contact us at [email protected] for more on our advisory services.
PADEL1969 | from Acapulco since 1969.
