Average Can Take You Far

I tried padel once. Why not? After all, I do play the occasional game of table tennis in the garden. But deep down I am a tennis player, without the padel racket, preferably on a red clay court.

My padel career will probably remain rather short. I already play tennis, table tennis, and golf at a fairly average level. Adding another ball sport would simply give me one more thing I do not have enough time for.

I could, of course, pick one of these sports and pour hours of energy into it, just to catapult myself into a slightly higher tier of mediocrity. From the “Men’s Second Team” to the “Men’s First Team,” so to speak.

No matter how hard I try, I will not escape mediocrity in this lifetime. And that is perfectly fine. Tennis, fortunately, does not have to pay my bills.

Average, Yet Successful.

Interestingly, in investing, average is something worth striving for. Results close to market returns can take you surprisingly far over a lifetime.

Anyone who earns 2.8% annually over 40 years triples the money invested. That probably preserves purchasing power. But someone who earns 6% multiplies the sum tenfold and creates real wealth.

In sports, you have to keep at it and train just to avoid getting worse. Improving requires a surprisingly large amount of effort. In investing, by contrast, the discipline to stay invested is often what matters most. A broadly diversified portfolio of shares in solid companies remains the royal road.

As in sports, we ourselves are one of the most important factors. Our psyche and emotions can support us, or trip us up.

Nothing in Life Is Free.

Bear markets and falling prices take a real toll on the nerves. These are the tough training sessions for investors. Everything, it seems, comes at a price.

Those who choose an investment strategy that fits their own makeup, however, stand a good chance of getting through difficult times unharmed.