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In a fast-paced world where instant gratification often takes centre stage, the philosophies of long-term investing and endurance training offer invaluable lessons. Managing client portfolios at Hewison’s for almost five years while simultaneously pursuing endurance training (long-distance running and cycling) has highlighted to me the philosophies of long-term investing and endurance training. The lessons offered through these philosophies can be applied across all facets of life. This blog explores the striking similarities between these two seemingly unrelated realms.
Unfortunately, some individuals tend to focus on quick gains and immediate results like speculative stocks, crypto, or quick finance schemes. There is also no shortage of quick fixes or fads within the fitness industry like an 8-week challenge at your local gym. This can often lead to unsustainable practices and temporary transformations. Human nature gravitates toward shortcuts, unfortunately, both long-term investing and endurance training demand long-term consistency to yield meaningful results.
At Hewison Private Wealth, we believe in the GET RICH SLOW philosophy. This says that diligent and disciplined portfolio rebalancing through market cycles will yield long-term performance, time in the market over timing the market. It is through this persistent effort and compounding over multiple years that gradual progress is made. Endurance training is no different, it’s a working-class sport where you have to be addicted to the process and progress. Big results/returns come in the long term from months and years of consistency. These long-term philosophies can be boring and less sexy than their more aggressive alternatives, nonetheless, playing the long game is a proven winner.
In both long-term investing and endurance training, success relies on setting realistic and achievable goals. Just as an investor defines their financial objectives, endurance athlete sets their sights on specific milestones. By establishing attainable targets, it ensures an appropriate amount of risk is incorporated.
If goals become unrealistic or unattainable, humans tend to train harder or take on high-risk investment opportunities to achieve their stated objectives rather than reviewing their objectives. This extra pressure tends to lead to injury or monetary loss. Short-term volatility is inevitable and the longer the time horizon, the greater the chance that you will meet your goals.
Partnering with a financial adviser and coach can be a game-changer in both long-term investing and endurance training. Their expertise, guidance, and support can help individuals stay on track, make informed decisions, and navigate the complexities of their respective journeys.
They provide guidance through market cycles and can assist with finding the optimal balance between risk and reward to achieve your objectives.
From personal experience, I’ve been lucky enough to be coached by three-time Olympic runner, David McNeil for over two years. Having his guidance over the period has enabled me to progress at an optimal rate with a reduced risk of injury. Dave’s guidance on setting future goals and creating a roadmap to achieve them is a key component of our relationship. This enables us to optimise training to get an appropriate amount of stress to achieve long-term goals. What I like to call ‘getting as close to the fire without getting burnt’. His experience, knowledge, and advice through peaks and troughs instil confidence and clarity.
These attributes of a coach are no different to a financial adviser. They instil discipline, provide accountability, and help refine strategies for optimal performance. Whether it’s managing financial goals or physical aspirations, seeking the assistance of professionals ensures that you have the necessary tools and resources to optimise your performance and achieve long-term success.
Long-term investing and endurance training share profound philosophies that can positively influence various aspects of our lives. Patience, persistence, goal setting, consistency, resilience, and adaptability are qualities nurtured by both disciplines. By embracing these principles, you are propelling yourself towards long-term success.