WIMBLEDON 2022: Investing Lessons from Tennis Court that will help us be Tenacious
Wimbledon's popularity stems from its illustrious history. Wimbledon is the world's oldest tennis tournament, held since 1877. The All England Club in Wimbledon, London, hosts the event. The Australian Open, the French Open, and the US Open are the other three Grand Slam tennis competitions, along with Wimbledon. It is the only major tournament still held on grass, the classic tennis surface. The event is generally organised traditionally and is held in late June for over two weeks. It begins on June 27th and ends on July 10th this year. So when you win the event, you become a part of a century-long tradition.
Some of the greatest tennis players in history have competed in this tournament. Roger Federer, Pete Sampras, and the late British player William Renshaw are among those who have won seven Wimbledon titles each. Renshaw won his first Wimbledon championship in 1881.
With experienced people giving each other a tough competition, the tennis court becomes a lesson ground. So dear investors, let’s dive deep into some fantastic investing lessons you should learn from Tennis Court.
Keep Your Eyes on the Prize
- Tennis Maestro Pete Sampras remarked that losing Stefan Edberg at the 1992 US Open taught him a simple lesson: "It made me truly hate to lose."
- Similarly, a successful investor keeps their gaze fixed on the goal. You can't just invest for the sake of investing. Successful investors have a clear strategy; they know what they want to accomplish in a specific period and how they intend to do it.
- It's pleasing to believe you know your opponent well enough to predict their next move. Someone is always willing to drop it just over the net, on the outside line. It will be nearly impossible to reach the ball in time if you are standing flat-footed at the baseline thinking about dinner. But let's say you're aware that this is one of their favourite tactics, and you try to anticipate it. They can simply lob the ball over your head and score the point if you rush to the net too quickly. You have a better chance of getting to the ball without being lobbed if you prepare to sprint in that direction while covering the baseline.
- It's easy to believe that as investors, we can forecast what the market will do based on whatever story we've concocted. ("I believe rates will rise, causing growth stocks to collapse; hence I should switch to value.") However, if you run into the net and trade from growth to value, the market may "lob" you by reacting differently than you expected, teaching you a hard lesson in market timing.
- Building a well-diversified portfolio with exposure to diverse sectors, styles, and regions is a better way to prepare for several scenarios. Then, you'll be ready to respond and rebalance your portfolio to target allocations regardless of how the point plays out.
Keep Practicing your Skills
- You'll fall short if the only time you work on your speed and agility is during a game. To gain the necessary skills, you must invest time outside of play. This necessitates self-discipline, and it isn't always enjoyable.
- Similarly, while market circumstances are reasonably calm, examining and arranging your portfolio is vital, so it's ready for several eventualities should markets get volatile. Set a strategic allocation based on your financial goals, risk tolerance, and time horizon, and avoid making emotional, short-term adjustments.
Maintain your Calm
- People have a habit of gripping the racquet tightly and squeezing my forehand. Instructing themselves to relax and lighten their grip helps them hit the best. They will fall into subconscious routines if this is not done, which will result in some poor photos.
- There is a lot of information coming at you from all sides when it comes to investing, and it's tempting to try to exercise control by trading regularly. However, when markets are volatile, the best thing to do is remind yourself to relax if you have correctly designed your portfolio for your requirements and goals. Then, if required, rebalance, but otherwise, relax your grasp.
Put Process Before Results
- If you have prepared hard, the opponent is no less. If you have prepared hard, the opponent is no less. If you win, you learn too. If you lose, you learn.
- This is the most crucial lesson to learn when investing. You won't always have the best of gains. If you're falling short of goals, analyse and change your process.
Have faith in your Move
- The green grass of the Wimbledon court teaches one of the basic life lessons that can readily be applied to your investment strategy too.
- As we might be aware that the grass on the other side, is not always green, though it might look so. We humans have a habit of admiring things that others have we don’t. To us, the grass is always greener on the other side. In tennis, there are a lot of different moves that players smash their opponents with. Every player has a unique move. The players bank on this unique move to win the game.
- When it comes to investing too, a lot of people feel that their strategies are weaker than others. And that they may be far from earning returns like the others. This doesn’t always have to be the case. An individual’s goals and investment styles, risk appetites etc. are different from others. What might be working for XYZ person, might not work for you. So have patience, trust your investment strategy and enjoy your returns.
Less Strain, Complete Ease: A similarity between Tennis and Investing
- Wimbledon is the only grand slam on the Grass court. Therefore, the focal point has always been the expansive grass courts. This not only fascinates spectators but improves a player's performance. Essentially, the natural and traditional grass courts provide less strain on the body of the players, allowing players to play at ease.
- Similarly, Passive Investing significantly aims to make investments easy and stress-free for the investors. For example, passive investing is known as purchasing securities that closely resemble stock market indexes and holding them for an extended period. In addition, you invest in various asset classes and industries rather than just one company, which can help decrease risk.
- Passive investing is considered your best friend if you are considering acquiring wealth over a long period. This is primarily because of its benefits of it. For example, investment products that are passively managed, such as ETFs and index funds, typically have lower expense ratios than actively managed funds. In addition, since the benchmark indices are built to represent the entire market, including various market sectors and segments, using a passive investment approach allows investors to gain the same benefits of diversification across all market segments through a single investment product.
- It is necessary to view passive funds more as a tool for asset allocation. While passive assets like index funds and ETFs cannot completely replace equity investments, they can certainly make up a portion of the equity allocation. This will not only give the client a more varied portfolio mix but also reduce the investment's volatility.
Investing and playing on the Tennis court got a few similarities. So the above-mentioned Investing lessons might help you upscale your Investment game, just like some excellent tennis players like Roger Federer, Rafael Nadal and Novak Djokovic. In no time, you might start acing your Investment game too.
In the path to your successful Investment Journey, let Glide Invest play a role by guiding you towards easier and better investment. To join hands with us, download the Glide Invest App today!