The Olympics are coming fast, beginning next week in Italy. I’ve always felt that sports can teach us life lessons that are also important outside of sport. With that in mind, here are some things about investing that we can learn from the Olympics.

In the larger picture, nobody wins a gold medal in their first year of a sport. It’s just not possible. You start by learning the basics, building a foundation, and putting in the time. Malcolm Gladwell’s “10,000-hour rule” is a good way to think about this; it takes a long time to master something. Similarly, you should expect that successful investing is a long-term endeavor. Be smart, build gradually and take a long-term view. Your odds of success will be much better than someone who invests recklessly to try to make a quick profit.

Next, let’s look at a few specific Olympic events, and how they mimic investing.

In the Biathlon, athletes cross-country ski at race speeds before settling in to shoot at a target. One of the keys to successful shooting is the ability to calm your breathing so that you can focus your shot. Similarly, when volatility hits and the markets jump or fall, you need to stay calm under stress. It is very easy to make bad decisions when emotions are high, and you don’t want to make a decision that sends your investments off-target.

In Ski Jumping, you need to be confident to be successful. There’s simply no way to jump off that ramp gracefully if your mind is filled with fear and doubt! But if you are overconfident, you can end up crashing. The same can be true with investing: if you invest too aggressively or go all-in on the latest hot investments, things can go terribly wrong. Stay focused and let your investments go the distance.

In Downhill Skiing, you need to soak up all the little bumps without getting thrown off course. Investing is no different. If you change course every time the market gets bumpy, history shows that you are less likely to get strong returns over time. People who try to time the market generally end up performing worse, not better. It is most efficient to follow the turns and bumps of the market until you get to your destination.

Curling is like building your financial plan. You start each end with a strategy, a plan for how the end will go. As the game moves along and circumstances change, you can make adjustments to your plan in order to get a good outcome. Sometimes the other team makes a great shot that completely changes the end! Similarly, your financial plan should be constantly evolving. Life brings all kinds of curveballs, so you want to have a resilient, flexible plan. Make smart adjustments as the game changes, keeping your ultimate goal in mind.

When you watch the Olympics this month, enjoy the beauty of the competition. But don’t forget how those sports represent the rest of our lives.

How ever you watch the Olympics this month, invest smartly and invest well!

Larry Sidney is a Zephyr Cove-based Investment Advisor Representative. Information is found at https://palisadeinvestments.com/ or by calling 775-299-4600 x702. This is not a solicitation to buy or sell securities. Clients may hold positions mentioned in this article. Past Performance does not guarantee future results. Consult your financial advisor before purchasing any security.