Golf and investing. Both inspire our passions, yet both can be humbling.
Hopefully, they’ll improve your game.
“Human nature seems to bring out some of the same detrimental behaviors in both golf and investing,” writes a former award-winning PGA golf instructor turned financial advisor. If you can recognize these potential pitfalls in your golf game, perhaps you can avoid falling into these traps with your investments.
Read more: Parallels, Pitfalls and Practical Advice From a Rehabilitated Golf Pro.
2. Be wary of friendly advice.
While there is much you can learn from the masters, it’s hard to know whether your friend's a “duffer” when it comes to investing. As well-intended as it may be, friendly advice can be detrimental to your game
Read more: 10 Golf Tips To Help Investors Tee Off.
3. Risk can pay off in the long run.
While you may hit a ball or two into the proverbial water hazard, taking risks can pay off over the long term as part of the overall risk and return dynamics of an investment portfolio. Remember, “the golfer doesn’t decide to take one risky shot, he determines that with 50/50 odds, he will win by taking the risky shot 100 times.”
Read more: Risk Versus Reward in Golf and Investing.
4. The simplest advice is usually the best.
With three words, Harvey Penick wrote in the Little Red Golf Book: “Take dead aim.” A simple lesson for golf – and in life. Often, simple advice is the best. As Morgan Housel counsels on investing: “Read more books and fewer articles. Read more history and fewer forecasts.”
Read more: Life’s lessons aren’t all that complicated, like golf, investing