In his book – You Can Be A Stock Market Genius, Joel Greenblatt draws a parallel between sailing as a hobby and successful long-term investing. He emphasizes that both activities should be enjoyed for the journey rather than focusing solely on the destination.
Just as sailing isn’t about reaching a specific place but rather enjoying the experience, investing should be approached with a similar mindset. Successful investors like Warren Buffett and Peter Lynch find joy in the challenge of investing itself.
Greenblatt advises that if one can’t handle market fluctuations without stress or doesn’t enjoy the investment process, a more passive approach might be more suitable.
Here’s an excerpt from the book:
One of my favorite hobbies is sailing—no racing, no destination, just being on the water and sailing. There are faster ways to move on the water—the technology has been out of date for centuries. Certainly, there are easier ways to get from one place to another; the ratio of hard work to distance traveled is great.
The point, though, is not to go anywhere in particular. I always end up just where I started. The point for me is to enjoy and make the most of the journey. All the fun, as the saying goes, has to be in getting there—because there is no “there” there.
To be a successful investor over the long term, you must also pretty much enjoy the journey. Warren Buffett and Peter Lynch long ago surpassed any reasonable level of savings required to ensure that those near and dear to them would be provided for. They clearly enjoy the challenge of investing.
If you’re the type that’s going to lose sleep after the first market dip (or worse yet, if you’re going to panic out of your well-thought-out investment positions just because the market falls), then maybe a more passive approach than the one advocated in these pages would be better suited for you.
In fact, if you’re not going to enjoy the “game,” don’t bother: there are far more productive uses for your time.
You can find a copy of the book here:
You Can Be A Stock Market Genius – Joel Greenblatt
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