Everytime I watch golf I can’t help but think of how many similarities there are between successful investing and championship level performance on the golf course.
Anyone who’s attempted a round of 18 holes knows how difficult golf can be. The game is a ruthless fight between you and the course. You’re constantly engaged in an uphill battle. It’s uphill because with each hole you have the limited potential to shoot a few under par, but the unlimited risk of shooting way over.
Take a par 3 for example, the best you can do is shoot a hole-in-one. And that rarely happens even for professionals. Yet the worst that can happen is devastating. You could shoot 3 over, 4 over, 5 over, or even 6 over par on that short little par 3. This is what we call negatively skewed risk to reward. We can only shoot under par by so much, but we can shoot over par by an unlimited amount. Poor Jordan Spieth quadruple bogeyed the 12th hole at the Masters this weekend and went on to lose the tournament because of it. He had been in the lead the entire time only to lose in the final few holes. Read more →
https://i2.wp.com/macro-ops.com/wp-content/uploads/2016/04/golf-picture-e1460335208666.jpg?fit=300%2C300300300Tylerhttp://macro-ops.com/wp-content/uploads/2016/02/Macro-Ops-logo-e1456504515714.pngTyler2016-04-10 20:41:402016-04-26 12:50:06What We Can Learn From The Masters