Be Like Roger
Posted on June 22, 2011
Filed Under Investment Strategy, Investor Mistakes, Mutual Funds, Personal InvestingThe Wall Street Journal recently ran a story on tennis great Roger Federer. It included insight into his phenomenal success on the tennis court, and interestingly, much of what Roger said in the sidebar story echoes the investment philosophy I try to instill in our clients.
It starts off by saying:
He hardly ever gets hurt. He’s almost never tired or grumpy. What’s the secret?
Think long-term, don’t overplay:
“I tried to look at the long-term. I didn’t want to chase everything possible in the short term.”
“Think long-term” may be the most important three words in investing. And investors who chase short term performance almost always end up “injured.”
No sports superstitions:
“I don’t care if I practice at 9 in the morning or 10 p.m.”
Similarly, we all need to stay away from investment superstitions. I know many investors who will only sell a depressed stock or mutual fund “after it gets back to what I paid for it.” That’s just silly. That stock or mutual fund doesn’t know you or care about you, and it is either something you expect will do well in the future, or it isn’t.
Pay attention to your body:
“He’s able to say, it doesn’t hurt me today, but it could hurt me tomorrow.”
Pay attention to your investing discipline. If you become lax because something doesn’t hurt you today (taxes, proper asset allocation, little or no retirement planning, etc.), it could well sneak up and bite you in the butt tomorrow.
Travel can be fun — enjoy it:
“The tour is not supposed to be brutal and annoying.”
Same with investing. Too many folks I talk to think successful investing must be an arduous or stress-inducing process. It should be neither – IF you are invested properly and you keep your eyes on the long-term horizon. Sit back and enjoy the ride because the odds are on your side. Stock market volatility cannot be avoided, so don’t let it shake you from your long-range goals.
I’ve never been a fan of forced metaphors, but this sports story, about one of my all-time favorite athletes, struck me as a dead-on, succinct distillation of grand-slam investment advice.
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