America’s Pastime
Baseball and the stock market are quintessentially American. Both reward patience, punish impulsiveness, and demand a long-term perspective. They are lifelong passions of mine.
The earliest known mention of baseball in America dates back to 1791. Shortly thereafter, the American stock market was founded in 1792 with the signing of the Buttonwood Agreement on Wall Street. From the beginning, both have been woven into the fabric of American life.
I started playing baseball at age four and eventually retired my cleats, despite receiving college scholarships, to pursue studies in computer science. At 18, I was a pragmatist. I was good, but not Major Leagues good. The rise of Silicon Valley pulled me into the technology world until September 11th, when I enlisted in the U.S. Air Force.
To say I was addicted to baseball as a youth is an understatement. I watched Major League Baseball daily, tracked statistics, collected baseball cards, played baseball video games, and spent countless hours outside with neighborhood kids or throwing a tennis ball against the garage and fielding imaginary ground balls.
At the time, I did not realize that baseball was quietly teaching me how to become a successful investor.
I was fortunate to attend De La Salle High School in Concord, California, a Catholic all-boys private school with a nationally recognized powerhouse athletic program. The 2014 sports drama When the Game Stands Tall was based on my high school.
My freshman year was a humbling experience. Success in the local Pony League left me borderline arrogant heading into high school tryouts. I was cut. It was painful, but necessary. I learned that confidence without preparation and discipline is fragile.
Successful investors are grounded. They do their research, manage emotions, and make decisions aligned with long-term financial plans rather than short-term excitement.
My sophomore year, I was ready. I created a year-long plan to make the team and executed it. I earned a spot on the junior varsity. The coach quickly recognized my limitations. I was not a strong hitter, I was slow, and not particularly athletic, but I had a strong arm and pinpoint accuracy. I was placed in the bullpen as a relief pitcher, and we used the designated hitter rule.
Successful investors recognize their strengths and weaknesses and seek help where needed. Warren Buffett once said that Berkshire Hathaway could not have been built without Charlie Munger’s inspiration, wisdom, and participation. Buffett described Munger as the architect, while he served as the general contractor.
As a junior, I made the varsity team and once again found myself in the bullpen. I thought I had finally arrived until practice began. We ran miles, did pull-ups, push-ups, and even practiced juggling baseballs. Why? Because fundamentals matter, even at the highest level.
Successful investors never ignore fundamentals. These include profit margins, revenues, debt, and return on capital. Accounting is the language of business. Acting on a hot stock tip from a friend or television personality can lead to disastrous results. Fundamentals always matter.
Our team continued winning and finished as one of the top 25 high school baseball teams in the country and number two in California. In the semifinal game, we were up by one run in the final inning. The opposing team had bases loaded with one out. I was warming up in the bullpen when the coach made what many would consider a risky decision by calling me in despite my limited experience.
He knew I did not walk batters and I induced ground balls. The situation called for a double play. That is exactly what happened. Two outs later, we were headed to the championship.
Successful investors take calculated risks. Holding excessive cash or fixed income may feel safe, but it can quietly increase long-term risk by failing to meet future goals. Many portfolios require greater exposure to strong companies, not less, to succeed over time.
By my senior year, I earned the role of starting pitcher on the team. The hard work, patience, and discipline paid off.
Investing, much like that championship season, is not decided by a single inning or a single trade. It is a lifelong discipline. But if you respect the fundamentals, manage your emotions, and take calculated risks when the odds are in your favor, you put yourself in a position to win.
Joe Olive, CFP®, MPS, is a 10-year Air Force veteran who works as a CERTIFIED FINANCIAL PLANNER® with Sather Financial Group, a fee-only strategic planning and investment management firm. He holds a master’s degree from Columbia University.
