Rise of the fallen

Imagine you're wagering on the UEFA Champions League. You might be tempted to pool all your money on Arsenal, the underdogs who could deliver a jackpot if they manage to pull off the improbable. But a seasoned bettor would go for a far higher chance of a solid payoff. That would be Real Madrid, a team with a proven track record of success and a knack for delivering when it counts. Equity investing is no different. Market leaders with pole positions in their industries, unmatched scale, financial heft, and credible history of weathering downturns make for the obvious choice for savvy investors. They might stumble occasionally, much like Madrid's turbulent 2017-18 season, when the team struggled to find form, but champions are rarely down for long. By the end of that very season, Madrid clinched the title once again, proving why they are the best in class.