By Scott Ronalds
Whistler Blackcomb opened on the weekend, and the office is pumped. Last season was a dud, but with a record El Nino lurking in the Pacific, the west coast is likely in for a wet winter. Fingers crossed that it translates into more snow than rain on the hills this year.
There’s no scientific evidence to back it up, but I’ll be so bold as to proclaim that skiers/snowboarders make better investors. Here’s why:
1). Conditions can change quickly. A calm, clear morning on the hill can turn into a gusty whiteout in the afternoon. Likewise, a good run in the markets can quickly reverse course with no warning. A good skier is prepared for a change in conditions.
2). Fresh tracks. Skiers live for untouched powder. Like a savvy investor, they love picking their own route and aren’t interested in following the herd.
3). Patience. Anyone who has skied the Harmony chair on a sunny day knows that a lineup is inevitable. Nothing you can do but patiently wait it out. Similarly, an investment thesis can take time to play out.
4). Wipeouts. Every skier has a story of a nasty spill. It’s part of the sport. Investing is about taking risk, so face plants can’t be avoided. You make mistakes, pick yourself up, learn from them and move on.
5). Chairlifts. In what other endeavor do you get to sit on a chair suspended in the air in solitude for 10 minutes with a stranger(s)? Skiers gain interesting insights and observations from conversations with people outside their normal social circles. Similarly, shrewd investors seek out opinions and observations they might not come across in their daily routine.
So get the skis waxed and the boots warmed. Your portfolio will thank you for it.