Long-distance running & wealth building: Brothers from another mother

I'm a new investor who happens to enjoy running. While I often come across numerous Instagram posts of people boasting their sub-45-minute 10 km runs, there's a simple truth I've internalised.

Not every runner is the same.

In investing, Howard Marks echoes this idea of chalking out your own journey. Instead of following trends, he suggests assessing your character and choosing suitable investments. Your path should align with your risk tolerance, goals, and even personality.

After all, not every investor is the same.

The parallels between running and investing aren't lost on me. And in this article, I'll distil my running wisdom into actionable lessons that can guide you on your investment journey.

1. Good preparation

Getting up early is essential, but the real work is done the day before. Preparing for my runs requires tuning my diet and sleep time. Only then can I get a good workout.

As an investor, you need to decide on your risk tolerance, goals and time horizon. This preliminary work will help you choose investments that suit you for the long term. Thus, it sets you up for success in the long run (pun intended).

2. Starting is half the battle

Now, I get up at 6 am for my runs. And it is excruciating on most days. So, a trick I apply is to simply take it a step at a time - get up out of bed, change clothes and wash my face. By then, there's no turning back.

If you're on the fence about starting out with investing, then just begin with a small SIP. After a while, you'll take some constructive steps towards your goals.

3. Going slow

The single most important piece of advice I can give any runner or investor is to start at a comfortable pace. Focus on each breath and each stride. It will help you get more mileage, and you'll make fewer mistakes on the run.

Similarly, rather than rushing into any investment, you should research well and think from different angles. By slowing down, your error rate will plummet.

A framework that helps is the 20-slot rule posed by Warren Buffett.

It suggests that you take a ticket with only 20 slots to fill. Each slot represents an investment decision over a lifetime.

Having a limited set of decisions forces you to understand your investments better. So, the moment the market takes a nosedive, you won't bail on them.

4. Setting pace

I'd best describe a warm-up as getting past inertia. And it usually takes me a long time to warm up. Actually, 2 kilometres is standard for me.

Similarly, when you start investing early in your 20s, you'll have an income that barely keeps up with expenses. And it can feel like a chore to invest, almost like trudging through your run.

But after a few years, you'll notice something strange. You'll find that investing has become a priority in your life. A habit even.

Much like your legs, you're now warmed up - both physically and mentally.

5. Compounding - The tipping point!

In running lingo, there's a term often thrown around: "the wall". It's the point where a runner hits a physical and mental barrier, and it differs for everyone. From experience, I can tell you it feels like you're on the verge of collapsing.

Your mind is flooded with alarm bells. But if you push through the pain and keep running, something remarkable happens. The exhaustion fades, and the run becomes smoother - almost enjoyable. Suddenly, covering longer distances requires less effort.

As an investor, you'll face your own version of "the wall". Market downturns will challenge your faith. You'll wonder why your money isn't growing or why progress feels stagnant. It may take years of disciplined investing only to see unimpressive returns.

But then, after a decade or so, something magical happens. Compounding kicks in, and your wealth begins to skyrocket. Those small SIPs you diligently made over the years? They start working overtime, building your fortune faster than ever before.

It takes less time to create more wealth as you move further along your journey. That's when you know you've conquered your investment "wall."

Conclusion

After running for five years, I've realised that while training is essential for improvement, rest days are even more important. This same wisdom applies to investing as well.

Many people make the mistake of stopping and starting their SIPs, becoming overly active investors in the process. But true wealth-building happens when you sit tight and don't fiddle with your investments.

Also read: My junior colleague is richer than my manager. Here's how.

This article was originally published on February 14, 2025.