On the surface making an investment is nothing like surfing. In fact it seems odd to even put the two subjects in the same sentence. However if you examine both closely, you begin to see that they are in fact commonalities between the two disciplines.
Investors can learn a lot from surfers, at least the good ones. Here are a list of a few of the things surfers do, that smart investor might want to pay close attention to when they are seeking an investment and after they have invested.
Surfers Prepare Before They Go Surfing
Part of becoming a good Surfer is understanding what surfing is all about as well as choosing the best surf shop for the best surfing equipment. Good surfers do their homework about the best places to surf and what to expect when they are out in the water. So when they go out surfing, there are few surprises. Surprises in surfing, like in investing is never a good thing.
So Surfers do all they can to understand any possible eventual outcome and any scenario that may arise. This level of preparedness makes them calm and comfortable on a small piece of fiberglass out in the ocean. Similarly investors need to be fully prepared before they invest. This means knowing clearly what they have available to invest and what it is they are looking for, in which to invest their funds.
Surfers always check the weather before they go surfing to make sure that it is worth investing their time and going surfing that day. If the weather is not ideal, they leave this surfboard in the garage and wait for the ideal conditions to surf. In short, they need to understand the conditions that they are entering into before they get in the water, because they know that once they are in the water, at that point it might be too late to turn around. Investors need to take the same approach when looking at an investment. Check the company, the industry, and the conditions around investing at that time. All need to be favorable if the investment is expected to be profitable.
Surfer Know When to Let a Good Looking Opportunity Pass
When Surfers are sitting on their board, they are doing it with the knowledge that they may miss the best waves of the day. Perhaps someone else near them might catch that way first, perhaps they misjudge the quality of the wave and by the time it reaches them it’s too late. Or perhaps they may not be prepared when the wave come. In any case, the surfer needs to be prepared to let a good-looking wave pass if the conditions for riding that way are not ideal.
Investors need to take a comparable approach when considering an investment. Some Investments look too good to pass up, but if the investor is not prepared for any reason, then that is simply the wrong investment. An investor should have a methodical approach toward how his or her Investments are to be made, and if this approach is proven to work, it should be adhered to religiously. Besides good surfers know that there is always another good wave coming, they only have to wait for it.
When Surfers Wipe Out, They Look for Another Good Wave
All good Surfers know that no matter how talented they are they will eventually wipe out on a wave. It might be painful and it might be demeaning but it is foregone conclusion when surfing.
As an investor you can expect that some of your Investments will not be profitable. This is the nature of investing. But even the most successful fail. But like the surfer who knows that even though he wiped out, he must look for another wave and try it again. Investors must take a similar approach in that when things don’t go their way they must regroup, and look for an opportunity to invest again when the conditions are ideal.
We do not expect investors to start trading their wallets for surf boards after reading these pints, but there is a lot for them to learn from surfers.