By: Joey Casolaro, CFP®
The weekend before Memorial Day, I headed to the beach to surf. Sitting out in the water waiting for waves, I realized something surprising: the traits needed to ride a wave successfully are remarkably similar to the traits needed to be a successful investor.
At first glance, surfing and investing seem completely unrelated. One involves salt water and surfboards, the other a computer and stock markets. But both require patience, preparation, and the ability to stay calm when conditions become unpredictable.
Here are three lessons that surfing reinforced about investing.
Patience: Waiting for the Right Wave
Depending on the day, the ocean can deliver wave after wave of perfect rides, or it can feel completely flat with long stretches of waiting between opportunities. Sometimes a great wave appears every few minutes. Other times, you may wait 10, 20, or even 30 minutes for the “Big Kahuna”, the wave worth chasing.
Ironically, patience matters in both situations.
When waves are nonstop, trying to catch every single one will quickly exhaust you. Experienced surfers know that conserving energy and waiting for the right wave often leads to a much better ride. When conditions are slow, patience becomes even more important because forcing a bad wave usually leads nowhere.
Investing works the same way.
There will always be a new “hot stock,” exciting IPO, or “once-in-a-lifetime” investment opportunity grabbing headlines (a timely example being SpaceX). Financial media and social platforms thrive on creating the feeling that you are missing out if you are not constantly chasing the next big thing.
But history shows that most of these hyped investments fail to outperform a disciplined, diversified long-term strategy.
Successful investors understand that wealth is usually not built from constantly jumping from one exciting investment to another. It is built through consistency, patience, and allowing compounding to work over time.
There will also be periods where investing feels boring. Markets may move sideways for months. Diversification may temporarily seem ineffective when one area of the market is outperforming everything else. During these moments, patience becomes one of the most valuable investing skills you can have.
Prepare & Plan: Don’t Paddle Out Unprepared
The first time I ever surfed, I showed up with nothing more than a surfboard, sunscreen, and a bottle of water. What I failed to realize was how cold the ocean was.
Fifteen minutes later, I was back on shore, convinced my toes had frostbite.
That experience taught me a valuable lesson: before you paddle out, you need to understand the conditions and have the right equipment. Surfers check the surf report, water temperature, tides, wind conditions, and weather before getting in the water. They make sure they have the proper wetsuit, booties, gloves, and board for the conditions they will face.
Investing requires the same level of preparation.
Simply throwing money into random investments without a plan is like paddling into the ocean without checking the forecast. You may get lucky occasionally, but eventually the conditions can turn against you.
A strong financial plan starts with understanding your goals and matching your investments to the timeline of those goals.
For example, imagine you have $100,000 in cash and know you will need $50,000 next year for a home renovation. Investing that entire amount aggressively in the stock market could expose money you need in the short term to unnecessary risk. A more thoughtful approach may be allocating the renovation funds to a lower-risk vehicle, such as a high-yield savings account, while investing the remaining funds for long-term growth.
Good investing is not just about maximizing returns. It is about positioning your money appropriately for the environment and your objectives, just as you would choose the right gear before paddling into the ocean.
Keep Emotions Out of It: Stay Calm When the Wave Comes
Being a novice on my surfing journey, I make the same mistake every time I paddle into position for a wave.
The moment I see the wave building behind me, excitement kicks in. I start paddling too aggressively, lose my balance, throw off my positioning, and often miss the wave entirely. I must constantly remind myself to stay calm, stay balanced, and trust the process.
Investing can trigger the same emotional reactions.
When markets are climbing and headlines are optimistic, it is easy to feel invincible. Investors often become overconfident, taking more risk than they should because they believe prices will continue rising indefinitely.
On the other hand, when markets decline, fear can take over. Investors panic, abandon long-term plans, and sell at the worst possible moments.
In both surfing and investing, emotions can pull you out of position.
Successful investors understand that emotions are temporary, but disciplined decision-making creates long-term results. Rather than reacting impulsively to headlines or market swings, they rely on a plan, maintain perspective, and focus on long-term goals.
The best surfers are not the ones who panic every time a wave approaches. They are the ones who remain steady under pressure.
The same is true for investors.
Final Thoughts
Surfing and investing may seem worlds apart, but both reward the same core disciplines: patience, preparation, and emotional control.
The ocean is unpredictable. Markets are too.
You cannot control the waves or the market, but you can control how you prepare, how you react, and whether you stay committed when conditions become challenging.
And sometimes, the biggest rewards go to those who patiently wait for the right wave.
Joey Casolaro is a CERTIFIED FINANCIAL PLANNER® at HIGHLAND Financial Advisors, a Fee-Only fiduciary wealth advisory firm that offers comprehensive financial planning, retirement planning, and investment management. Joey graduated from the University of South Florida with a bachelor’s degree in personal finance and successfully passed the CFP national exam in 2021. Joey enjoys working out, spending time outdoors, and hanging out with family and friends in his free time.
The foregoing content reflects the opinions of Highland Financial Advisors, LLC, and is subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that the statements, opinions, or forecasts provided herein will prove to be correct.
Past performance may not be indicative of future results. Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses, which would reduce returns.
Securities investing involves risk, including the potential for loss of principal. There is no assurance that any investment plan or strategy will be successful or that markets will act as they have in the past.
The above article was written with the assistance of artificial intelligence (AI).