We tend to create analogies to simplify concepts that are daunting or difficult to understand. For example, one famous analogy from Singapore’s first Prime Minister Mr Lee Kuan Yew is how life is like a game of cards.
He said: “Life is what you make of it. You are dealt a pack of cards, your DNA is fixed by your mother and your father; you may be siblings but you may get different parts and parcels of the DNA. Your job is to make the best of the cards that had been handed out to you.”
A pretty straightforward analogy that you don’t really need to explain – which is the hallmark of a good analogy.
No pressure, but as an avid football fan, my analogy is how following the the English Premier League (EPL) can be similar to investing in an index, such as the Straits Times Index (STI).
If this is the first time you’ve read the words STI and EPL in the same sentence, I’m not surprised, but, hear me out.
Read Also: Why Managing A Football Team Is Similar To Managing Your Investment Portfolio
Only The Best In The Country Makes The Cut
The EPL is made up of the 20 best football teams in England. The STI is made up of the 30 largest and most liquid companies in Singapore – which is just another way of saying best companies in Singapore.
Each season, the 3 worst performing football teams in the EPL are relegated – and replaced with the 3 best teams in the league below it (i.e. the Championship).
Similarly, poor performers can be removed from the STI. For example, following the STI’s latest quarterly review in June 2025, Jardine C&C was replaced, and Keppel DC REIT from the STI Reserve List will be added instead.
Quality Teams Can Always Rebound
While EPL teams may get relegated, they always have the chance to prove their quality and bounce back.
For example, Newcastle was a dominant force in the EPL in the late 1990s and early 2000s – finishing 2nd in 1995/96 and 96/97 seasons, 4th in 01/02, 3rd in 02/03, and 5th in 03/04. While the team was unfortunately relegated in 2008/09, it was promoted back to the EPL in 10/11 season. This year, it finished in the top 5 in the EPL.
Poor-performing companies have also been removed from the STI, only to be added back in later on. For example, Keppel DC REIT itself was removed from the STI in June 2023, and has now rejoined the STI in June 2025.
This method allows good football teams and companies to make a comeback.
Read Also: Complete Guide To Investing In The Straits Times Index (STI) ETFs In Singapore
But, Poor Performing Teams Can Be Forgotten
In the EPL, a club like Blackburn is part of a select group of only 7 clubs to have ever won the league. Following a change in ownership and management in 2010, the club was relegated in the 2011/12 season, and has not been able to earn promotion back into the EPL – despite still playing in the 2nd tier of English football.
Drawing a parallel, ComfortDelGro was a mainstay in the STI from about 2010 to 2022 – when it was replaced. While it hasn’t done too badly, and continues to be on the current STI Reserve List of 5 companies, it was passed over at the latest review – when Keppel DC REIT was selected to enter the STI instead.
Occasionally, there have also been football teams that fall into oblivion after relegation from the EPL. For example, there is Oldham Athletic, which some ardent football fans may not have heard. Oldham Athletic was a founding member of the EPL when in 1991/92 season, but was relegated in 93/94. Today, Oldham Athletic is playing in the 4th tier of the English football system.
Looking at the STI, Metro Holdings was part of the original STI list when it was formed in 1998. Today, while Metro Holdings continues to be a listed company, many of us may not even know or want to invest in it.
Read Also: Here’s How The Stocks Within The Singapore’s Straits Times Index (STI) Have Changed Since 1998
Your Favourite Team Can “Make” Your Viewing Experience, But Should Not “Break” It
Supporting your favourite team is a deeply emotional journey. So, this point can come across more theoretical than practical – I understand more than anyone as a United fan.
Just like we follow our favourite team’s games, players, transfers, managers and news, many of us may also have favourite stocks that we follow. We do research, read its news and track its prices.
While picking the right stocks can make our investment journey much more fulfilling and exciting, the STI helps us diversify our exposure so that no single constituent can cause a major financial setback to our portfolio.
As I’ve mentioned, we invest a lot more emotions into following our favourite EPL team. So, it can be hugely frustrating to watch our favourite club perform poorly, the overall standard of the EPL is high. If we switched the channel to watch two neutral teams play, we can still be treated to a good game of football to watch.
Read Also: SPDR STI ETF VS Nikko AM STI ETF: What’s The Difference Between The 2 STI ETFs Listed On SGX?
Enjoy Watching Other EPL Teams Play
Since the mid-1990s, I have supported the red half of Manchester. Many of you will know that the last 12 years have not been kind. Nevertheless, they continue to be one of the biggest clubs in England.
Similarly, in the STI, the biggest companies have been the banks in recent years. In the past 10 years, DBS has delivered an annual return of 11.7% p.a., and OCBC and UOB achieved 7.8% and 7.3% p.a. respectively. While Singtel remains one of the biggest companies on the STI, it has only deliver 2.6% in the past 10 years.
Even though Manchester United has not been performing well, the English Premier League continues to be one of the most popular and entertaining sports leagues. As of the 2023/24 season, EPL games were broadcasted to 900 million homes across 189 countries – with 1.87 billion people fans.
So, watching Manchester United has not paid much “entertainment returns”, but, those who follow the EPL are able to enjoy high-quality football games. Despite United’s dismal showing in Europe recently, the finals of the Champions League in the last 10 years have featured 7 finalists from the English Premier League – ahead of Spain (6), Italy (3), Germany (2) and France (2). And, even though Real Madrid (from the Spanish League) have won it 5 of the 10 times, it still shows that the EPL is a serious competitor.
Join Our EverydayInvestor Event – And Become A Better Investor
We believe that investing does not need to be daunting or difficult. Instead, it should be part of everyday life. So, join our Flagship EverydayInvestor event on 19 July 2025, Saturday, from 10am to 3pm, at the SGX Auditorium.
As you can guess, we will aim to use football analogies to discuss investing concepts. Don’t worry if you’re not a football fan (or like my wife, even if it puts you to sleep), as we have an exciting line-up of speakers, aside from the DollarsAndSense team:
Loo Cheng Chuan, founder of the 1M65 movement, will be speaking on “Are You A Fair-Weathered Investor?”
Dawn Cher, better known as SGBudgetBabe, will be launching her first book at the event! She will be talking about “How To Take Back Control Of Your Money”
Bringing the topic closer to home, we can also hear Former professional footballers, who will share their experiences about “Beyond the Game: Financial Lessons From Being A Professional Athlete”
Registration for this event is $5, and you can look forward to lunch, refreshments, a goodie bag packed with treats, and a shot at winning exciting prizes – either at our interactive booths or in our lucky draw.
EveryDayInvestor (join the movement here on Telegram!) is an initiative by DollarsAndSense to make investing a daily habit.
Our vision is simple: everyone can be an investor, and not just those who studied finance or work in the industry. Just as staying healthy is a life skill that anyone can adopt, building good investing habits is also a valuable skill.
The Everyday Investor event – Manage Your Portfolio Like a Winning Football Team, is proudly organised by DollarsAndSense, with the generous support of our event sponsors, SGX and Tiger Brokers.
Seats are limited, and registration will close once all slots are filled. Be sure to secure your spot early. Register here.
Watch our latest podcast episode and learn why backing the whole league (via ETFs) might beat picking a star stock.
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