If you’ve ever watched the pros or played golf yourself, you know just how challenging and competitive the game is. In golf, so much can go wrong so quickly and your margin for error is slim. In order to be successful in golf, there’s a number of skills to master that just so happen to translate into the world of investing as well. Let’s take a look at what golf can teach us about investing.
Getting off to a Good Start
In golf, you want your first shot on each hole to stripe the middle of the fairway and set you up for a great second shot. Investing is no different. You want to start as early as possible, contribute to your portfolio as a much as possible, and build a strong foundation so you have more options later on.
Strategy is Strength
Knowing your options each time you step up to the ball while also knowing your limitations is essential to becoming a strong golfer. A strong golfer is a strategic golfer. Meaning they know how to balance the options available with their known limitations. Sometimes going straight for the green on your second shot isn’t your best play even though you could potentially get it there. Instead, sometimes it’s safer to lay up where you’ll have a better approach shot.
In regards to investing, it means finding a good mix of investments that suit your desired level of risk considering your long-term goals and needs. You want to think strategically about the path you take to get there.
Staying Calm in the Storm
Even the pros don’t always hit a perfect shot and sometimes they even end up in the sand. They don’t lose their cool, though. Instead, they remain calm and approach the shot the same way they approach every other shot – calm, cool, collected.
To be a successful investor, you must be able to do the same, which means weathering market volatility or fluctuations with that same level of calm.
Pick the Right Clubs
A good golfer would never walk onto the course with an incomplete bag. Instead, a good golfer has a variety of different clubs meant for different types of shots on the course.
A successful investor is the same way with their portfolio. They have a diverse set of investments that can create new opportunities but can also help protect against market volatility. Each club in your bag or each holding in your portfolio has its own role to play.
Take Some Lessons
We all know the saying “practice makes perfect”. We know becoming an expert requires a tremendous amount of practice. If becoming an expert is your goal and all that practice is only continuing to instill bad habits or poor form, you can’t expect those habits to change. Lessons can get you back on the right track. Both in golf and investing, lessons will help you perfect your form, develop smart strategies, and ultimately perform better on the course.
It’s amazing how many similarities can be drawn between golf and investing. You may have noticed how many successful businessmen/investors are avid golfers. They view golf and investing as equally challenging games but with the potential for tremendous reward. Both require mindsets geared towards delayed-gratification – you put in the hard work now, remain calm and patient, be strategic, then just stick with it. There’s always something new to learn and there’s always room for improvement.
For investing lessons, schedule a free consultation with us today.