Validea: What Kobe Bryant’s Mantra of “Never Get Bored With the Basics” Can Teach Investors

Great investors have a lot in common with great athletes. There’s an innate skill. But it’s also been honed by years of hard work. Much of that hard work is simply sticking with the fundamentals.

For instance, a golfer who spends no time practicing their putting can have a good leading swing, but still keep hitting over par. It’s the fundamentals that drive exceptional returns.

Several other skills are at play as well. One is dedication to daily improvement. Basketball great Kobe Bryant started morning practice at 4AM, hours ahead of other team members. Putting in the time to make small daily improvements can lead to big work.

Great investors likewise spend time researching and analyzing companies, and keeping up to date on their latest developments. And while they may look for new trading strategies, they’re not looking to reinvent the wheel.

Perhaps the biggest skill is diversification. Great players may excel in one area, but they’re no slouch in other parts of the game. Good investing likewise follows a path of diversification. That ensures that a runaway winner doesn’t overwhelm a portfolio.

And a diversified portfolio ensures overall success, rather than depending on one player who may choke at the wrong time.

To read the full analysis, and how to apply it to your investments, click here.