Three-Dimensional Chess in the Stock Market

People make mistakes. Not every misstep can be avoided, because not everything is within our control. At times we are too hard on ourselves, expecting perfection where none exists.

Sport makes this especially clear. In 1995, sports psychologist Bob Rotella published Golf is Not a Game of Perfect. In it, he explains how crucial mindset is on the course. Your mental approach determines success or failure.

Golf is not a game that can be perfected over time. It is played by humans. One thing, however, is within our control: how we respond to mistakes.

Only the swing we take right now matters. Not the shot that just went wrong, and not the difficult seventh hole waiting ahead. Focus is everything.

The Contradictions of the Market.

Investing is just as far removed from perfection. No matter how much planning and analysis we do, there will always be unexpected developments. And some of them will hurt.

The “game” of the stock market feels like a three-dimensional board game. Unlike golf, the rules, the playing field, and the opponents keep changing. If that were not the case, we could all attend a stock market university, earn a degree, and make as much money as we want for the rest of our lives.

Good investing is a paradoxical mix of unchanging principles, constant learning, and continuous adaptation. No matter how much the game evolves. Since there can be no consistency in short-term investment outcomes, stable investment principles matter immensely. The reality is simple: every strategy works in some periods and fails in others. Without exception. And yet, strong convictions are essential to get through the weaker phases.

As disciplined investors, Gutmann follows a clear and well-thought-out strategy so that our clients’ portfolios are professionally managed in every environment.