Nick Saban, the legendary and recently retired football coach of the Alabama Crimson Tide, once said, “If you want to be good, you don’t really have a lot of choices.” He was referring to the importance of discipline in following a specific process to achieve success. Just like becoming a great athlete, success requires dedication and consistency.
Athletes Aren’t Born, They’re Made
No one is born an athlete. We all share common human tendencies: choosing sleep over exercise, indulging in donuts instead of broccoli, and opting for fun over hard work. But what sets athletes apart is their commitment to a routine or process that transforms them into top performers. They consistently show up at the gym, stick to a nutrition plan, and persist with their routines, even when they’d rather not. Discipline is the cornerstone of their success.
Investing Like an Athlete: A Solid Investment Process
The "secret" to becoming a great investor mirrors the journey of an athlete—it requires discipline to follow the right process. Watching the stock market every day won’t turn you into a successful investor. So, what steps should you take to build a strong investment routine?
Ignore Economic and Market Predictions
The constant desire for future certainty can lead investors to fall into the trap of believing market predictions. The truth is, the only certainty is uncertainty.
Focus on Fundamentals, Not Price Movement
Daily stock price movements are often misleading. Instead of getting caught up in short-term fluctuations, focus on a company's earnings and cash flow—this is where real value lies.
Have a Reaction Plan
Surprising market events are inevitable. How will you respond? Will you act impulsively or follow media cues? Having a reaction plan in place ensures you make thoughtful, informed decisions. Consulting with a financial advisor can provide valuable guidance.
The Key to Long-Term Success: Discipline
Defining your investment process is essential, but it’s the ability to stick to that process, especially during challenging times, that separates average investors from the most successful ones. Just like discipline creates athletes, it also helps you achieve your financial goals. Stay committed, and remember, I’m here to guide you every step of the way.
Investment advice offered through OneAscent Financial Services LLC, d/b/a Provident Oak Financial, a Registered Investment Adviser with the United States Securities and Exchange Commission. Registration as an investment adviser does not imply any certain degree of skill or training.
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