Thursday, August 8, 1996

Shoes, Golf, and Investing (Part  Two)
by MJPolton

In my previous Fribble about practicing golf I mentioned going on a three-day golf trip. There were a couple of experiences I had on that trip I want to share with you, especially as they apply to investing.

Our first day was on my favorite golf course in Ocean City, MD. It's called Eagle's Landing and if you're a golfer going to Ocean City, I heartily recommend you try to play there. Anyway, after my great practice session, I was ready for a GOOD round on my favorite course.

I didn't get it. Not even close. I did something I had never done before. I stopped counting! It was THAT bad. I almost swore off the game completely. What happened after my great practice session? Probably not enough practice sessions, or practice rounds. One great practice session isn't enough. And in the investing world it's the same; reading one book, trying one method probably isn't enough (unless you stick to Beating the Dow, but that's not a fair analogy as you don't need practice then!).

The good news is that the next day was better, and the third day better yet. I even had a HOLE-IN-ONE! Seriously. It was great. It was misty that day, though, and I wasn't really sure it was in the cup until I got to the green, but then ... boy did the yelling and high-fives start! Back to investing. The lesson here is to keep at it. Keep investing Foolishly, even after drops in your portfolio like you've probably experienced lately. If I had quit after that first day, what I would've missed!

The story and lessons STILL aren't over (although the trip was). I next played golf about two months later. (I don't get out much anymore now that two little ones have joined our family.) What happened? You can probably guess. No holes-in-one, not a great round, just so-so (although not as bad as that first round). The lesson? One hole-in-one doesn't a career make (actually I've had two!). One great stock (or two) doesn't a career make. You're going to have up and down days. Great stocks, losers, and so-so ones. You need to keep practicing though, keep investing and keep learning. Keep putting your long-term savings in the market so you can keep enjoying the game, maybe savor a hole-in-one (i.e. another great stock), and watch your savings compound.

Transmitted: 8/8/96