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Investors Should Learn These 5 Lessons From Golf

September 24, 2019


Lesson One - Investors can learn from a pre-shot routine

The world’s greatest golfers realise the importance of a pre-shot routine. If you observe a great golfer carefully, you will notice them completing a unique sequence of behaviours before every shot. Each pro-golfer develops their own routine in which they analyse the situation and mentally prepare for the shot to enhance their probability of success.

Having a pre-investment routine can be just as beneficial for investors. If an investor creates their own series of behaviours which are meticulously performed before each investment, they can ensure that essential steps like thorough due diligence are not missed out. Having a pre-investment routine can help rationalise each investment decision, making your investment choices more astute and superior.

Lesson Two - The Importance Of Basics

A golfer’s alignment, stance and grip can make or break a shot. One small alteration to these golfing fundamentals can have a considerable impact on a player’s performance. Golfers know that small changes can make a significant impact. Subsequently, when things are not going to plan, they often start by reviewing and analysing the fundamentals first.

Investors should take heed of this approach when their portfolios aren’t performing as anticipated. Rather than making drastic changes to an investment portfolio, investors should consider first conducting an in-depth analysis of their fundamental investments to determine if a few small adjustments could improve their portfolio.

Lesson Three - The Value Of A Fresh Perspective

If the worlds greatest golfers can work with swing coaches to improve their game, then it stands to reason that even the city’s top investors can benefit from impartial expert advice. Having another professional can help even seasoned investors identify opportunities, strengths, weaknesses and areas for growth.

Lesson Four - Find Your Own Swing

Many amateur golfers look to professionals to try and emulate the way they play rather than discovering the style of play (or swing) that works best for them. When you see other people find success, it’s the most natural thing in the world to try and copy it.

It may be extremely tempting to try and replicate an investment strategy when you see it performing well for others, but that strategy may not be the best fit for your circumstances. Consistency and persistence often generate the most rewards for both investors and golfers. Investors should have clearly defined investment objectives that are tailor-made for them and not just imitate others.

Lesson five - Sometimes Bad Shots Happen

Experienced golfers understand that not every shot will play out the way they envision it too, so they make allowances for disappointing holes. A golfer’s focus is on maintaining the emotional equilibrium to move past bad shots and achieve the best results throughout the round.

Likewise, investors shouldn’t let their emotions take hold if their investment falters. Emotional investing is seldom beneficial for an investor and frequently leads to some of the worst investment decisions. Investing isn’t always straight forward, but keeping a level head can mitigate an investors chances of over-riding their progress through lack of rational, reasoning and logic.

If you would like to apply any of these lessons to our investments please visit our product page.

Meredith Charles Chester Golf Course
Meredith Charles At Chester Golf Club

Meredith Charles At Upton-by-Chester Golf Club

It’s official, for the next 12 months we here at Meredith Charles are the proud sponsors of the 18th hole at Upton-by-Chester Golf Club, one of the finest golf courses in Cheshire.  

Upton-by-Chester Golf Club offers a fair test for any golfer. The established course can be played all year round thanks to its USGA specification greens and boasts an attractive golfing experience.

Not only are we thrilled to sponsor a respected business close to our Chester office, but we also think that the discipline and lessons learned from golf can be applied in the financial sector to help investors improve their long game.


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