As investors, baseball players are batting significantly less than .300, at least when they aren’t using performance enhancers. Jorge Posada lost a tenth of everything he made during his career investing in a hedge fund that he didn’t know was a hedge fund run by two guys who didn’t know how to run a hedge fund. His former teammate Alex Rodriguez’s high-profile bid to get into finance also seems to have gone nowhere, judging by how much time A-Rod had to spend trying to figure out what Pete Rose was saying on television this October.
There are, of course, exceptions, such as financial guru Jose Canseco. The recently-retired David Ortiz hopes to be one of those exceptions. Big Papi and a bunch of other players who aren’t Big Papi are starting a private-equity firm that will invest in the things they know best: baseball equipment and performance-enhancing drugs. They’ll recruit active players to invest and test those next-generation products, as well as to endorse them, saving the sport from its terminal decline in the process. And, most importantly, they’re going to leave the really hard stuff to the professionals.
"Like Warren Buffett says, 'it's not what you know, but how realistic you are about what you don't know," Ortiz said in a statement. "We know baseball. But we plan on finding the best people in the business to help us on what we don't know."