If you’re a subscriber to our podcast, then you know one of the things that I really enjoy is golfing – so it’s not uncommon for people to ask (even if they’re somewhat kidding) “So, how did you golf today?” (Truth be told – pretty bad. I’m usually a mid-80’s golfer, but today I shot a 93. Boo.)
To me, answering the “how’d you golf today” is the same as “What did the market do today?” I don’t like answering either. Trust me – when I golf well, or if the market did exceptionally well today, I’ll let you know.
Golfing and investing are very similar; they both require similar skill sets and disciplines. Last week discussed how you have personal responsibility with your investing plan
– today let’s talk about what to do when you hit a wayward tee shot.
Sometimes even with the best swing, the ball just slices ever-so-gently into the rough (or as was my case today, the bunker). How do you respond? Well, there are two ways: first, you can throw your club, swear at the wind (or the tee box, or your teammate, or whatever) or you can focus on what you need to do to get the ball back in play.
you can get back in play.
Sometimes that means you have to punch out of the rough under a tree branch; sometimes you have to layup to the 100 yard marker; either way, don’t get upset – just get back in play.
When you make a poor investment decision that means:
1) Don’t worry first about assigning blame. Worry about correcting the problem.
2) Stay calm. Getting upset isn’t going to help you create better returns later.
3) Once you’ve regrouped, THEN determine what went wrong. Was your broker the problem? Did you not analyze the investment correctly?
You’ll invest much better following these simple steps that I learned from playing golf.
I married into a golfing family. They aren’t pros but have been golfing for a lot more years than I have. I am proud to say I can hit a ball now. How far it goes though is another story. I used to get really frustrated and pissed off. Now I just focus on enjoying the fresh air.
That’s what I do, Miss T! Just realize you’re getting more shots per dollar than that fool who really hits the ball a mile.
I would like to think that I’m good at golfing, but the truth is that I’m not. It doesn’t help that I only play with men who are really good.
I hate playing golf with good golfers. I feel like a dufus barely hitting the ball past the ladies tees on the third try when they’re already on the green. OG is much better than me.
Wait, so you actually like golfing? I just thought golfing was an excuse for men to get away from their wives and kids for an entire day, drink a bunch of beer, and drive little cars. No?
OG is addicted to it. Me on the other hand? Every time I get out there I think “I should do this more.” …and then I don’t.
But, I do know that the reason I golf is to get away from my wife and kids all day, drink beer and drive a little car. If it went faster, Michelle, it’d be heaven.
Is the investment a bad one long term or a flee from panic but still good in the long run swing?
I’m not sure exactly what you’re asking, Jai, but I think the answer is this: either way, it’s better to regroup and figure out where the tee is and your overall strategy before even deciding whether the investment is actually good or bad. Too many people panic and “hit again” in anger, frustration…whatever. Makes it ugly. BTW, can’t wait to see your Vblog!
I’m totally hooked on golf! Matter of fact I’m going on a golf trip with some buddies of mine next week. We do this every summer, such a great time! Great analogy with investing by the way.
Awesome, Paul. OG took a trip a few months ago to Alabama golfing. He had a fantastic time and because it was a package he paid nearly nothing.
I wonder if OG’s clients know that they are paying him to golf so that in turn he can come up with analogies and financial advice such as this. I like it though. Good stuff. This is why I love reading blogs. You can’t find stuff like this anywhere else.
I’ve recently taken up frisbee golf. It’s almost as fun as real golf and far less frustrating. Much cheaper too as every course that I know about is free! You only need to buy your discs.
I love it. You and I both know they have no clue they’re fueling his addiction. We have a cool frisbee golf course in a nice park here. It’s constantly full of people. I’ve gotta get some discs so I can play. Where did you get yours? Online? Don’t you get a bag of discs or something? (You can see I know zippo about it….)