Run Your Race

Different race distances require different training systems and styles. Not only that, but each individual runner makes changes based on their tendencies. It’s a personalized approach but even that doesn’t guarantee results. Jared Ward spoke about this to Runner’s World:

“After the Games, I was made fun of by some of the media for being the most excited sixth-place finisher ever. I was. For the performance to go so well on the right day takes good preparation but also good fortune. I feel blessed that it happened.”

Ward did his best but got beat, that happens. In a podcast interview, Ben Carlson said that investors need to get comfortable with “regret minimization.” There will always be someone that does better than you, says Carlson, so you need to get comfortable with your results.

Marathon runners don’t care about not winning obstacle course races and investors shouldn’t care about someone doing better than them in an area they don’t focus in. Investors can be competitive but they can’t be the best at everything.

Good investors have strong preferences for their areas of focus. Warren Buffett and Charlie Munger don’t do consumer facing technology stocks because things change too quickly. Seth Klarman said, “We don’t think we’re the best analysts of business, but we are good at complicated situations. The messier the better. We like situations with a catalyst.” Great investors know that their time is limited and they need to focus on a few key areas.

Online there are training plans for every type of runner for every possible race. If an athlete wants to move past that, there are coaching options too. Investors can use tools like Watchlists and Screeners. Those areas help investors focus on their own ‘race.’

Here at StockNews.com, we try to add as many tools as we can to help investors find their sweet spot. The Trader Toolbox (front and center on our homepage) is one such area that can offer a huge list of what news events are moving the markets — and which participants are involved. But to take news to a new level, we added the quick context of ratings as well (POWR Ratings). These offer the quick snapshot to deciding whether the stocks in focus merit a deeper look.

So if you’re focused on the “sprint” part of the stock market and want to trade, you’ll find a stock’s “Trade Grade” will be a great asset to you. Or if you’re a long-term marathon investor, the “Buy and Hold” grade will be your go-to metric.

Like runners do, investors will eventually adjust to what works best for them, but also understand there will be a lifetime of adjustments, but that’s the nature of running — and investing!