The Surprising Connection between Golf and Investment
By Saghir Aslam
Rawalpindi, Pakistan
(The following information is provided solely to educate the Muslim community about investing and financial planning. It is hoped that the Ummah will benefit from this effort through greater financial empowerment, enabling the community to live in security and dignity and fulfill their religious and moral obligations towards charitable activities)
Focus on the Fundamentals
Every pro golfer can strip down each shot to the fundamentals-grip, stance and alignment. If shots are starting to go off-line, many times the problem can be attributed to one of those fundamentals being off-small issues such as a grip that’s too tight, or knees that are too straight can be enough to throw off an entire swing, Champion says.
The same goes with investors who find they are off-track with financial goals. Often the issue is a small tweak to their financial situation, Champion says. Is spending outstripping saving? Does your asset allocation need to be adjusted so you can take on more or less risk? Once you identify
the problem, you can make the necessary adjustments to get back on course.
Seek Good Advice
Even with all their success, top pro golfers still work regularly with a swing coach and adhere to their guidance, Champion says. Similarly, even investors who think they are on top of game may want to find reliable financial advisors who can help them assess their strengths and weakness, identify long-term goals and design a plan to help them reach their goals. “Top players wouldn’t tinker with their own swings,” says Champions, “and top investors might not want to try to manage their own money”.
You Swing is Your Own
Champion notes that each professional golfer has a unique swing that works best for their game. Still, many amateur golfers look to emulate those swings when they hit the links on the weekend, rather than developing their own. The same is often true for investors. Resist the temptation to make sweeping changes in your own portfolio when a friend brags of better returns. Instead, champion urges clients to stick the financial strategy created for their own situation to help find investment success. In both golf and investing, persistence and consistency will reward you.
Be in the Zone
“When a golfer is playing well, they don’t hear the noise of the crowd -they call that being in the zone,” said Champion, who says investors also need to tune out noise, which can include market swings, following financial news anxiously and chasing stock tips. “focus on the substance and not the nose.
Bad Shots Happen
Experienced golfers know that they will hit a certain number of bad shots per round. The goal shouldn’t be to avoid making any bad shots, but to develop and maintain the emotional equilibrium to focus on the next shot, and the one after that, so that you ultimately stay on track.
Similarly, Champion says investors working toward a financial goal can’t and shouldn’t expect a constant upward trend. Market volatility and down cycles are bound to happen. “it’s not going to be smooth all the time.” Says Champion. “the key is to not make a rash decision that upends all of your progress.”
Morgan Stanley is a proud partner of THE PLAYERS championship in 2019, returning with its third annu8al Eagles for impact challenge. We will donate $5,000 for every eagle made to the Book Trust, a national nonprofit dedicated to removing barriers to literacy by allowing children to choose, take home and love their own books.
(Saghir A. Aslam only explains strategies and formulas that he has been using. He is merely providing information, and NO ADVICE is given. Mr. Aslam does not endorse or recommend any broker, brokerage firm, or any investment at all, nor does he suggest that anyone will earn a profit when or if they purchase stocks, bonds or any other investments. All stocks or investment vehicles mentioned are for illustrative purposes only. Mr. Aslam is not an attorney, accountant, real estate broker, stockbroker, investment advisor, or certified financial planner. Mr. Aslam does not have anything for sale.)
