Is investing like fishing?
Photo: Trond Larsen. Source: Pixabay
There are a lot of similarities. Both involve searching for something you can’t immediately see. Both require lots of patience. And both give you a deep sense of satisfaction when you’re successful.
I grew up fishing. From before I could walk my parents would take me out in a launch. Some of our best family memories come from week-long fishing trips on the Canadian border—going out early in the morning, eating a shore lunch at noon, then fishing some more in the afternoon, fileting and freezing what we brought in. At the end of the week we would drive home with a freezer full of fish, and would re-live that trip all winter as we gradually consumed our store.
A lot of what makes for success on the water is also helpful when you invest. The first item is preparation. A productive fishing trip starts well before you head out—getting the right equipment, understanding where you’re going, and what you’re fishing for. Fishing for bass is a lot different than fishing for lake trout. Good anglers spend countless hours poring over maps, lures, and other equipment.
In the same way, investors need to prepare. What do you want from your investments? Are you looking for growth or income or a little bit of both? Are you more interested in safety or performance? And do you want to do it yourself, or are you interested in a working with a guide?
Success—in fishing, or with investing—doesn’t just happen. It has to be planned. And it starts by understanding what you want.
Douglas R. Tengdin, CFA
Chief Investment Officer