This article is reprinted with permission from Esq. Wealth Management, Inc.
Since moving into Black Rock in Coeur d’Alene, Idaho, golf has become more than a pastime for me. It has become a classroom. Time on the course has shown me that golf, financial planning, and investing share deep similarities. They require discipline, patience, and the ability to think several steps ahead. And they can be humbling. One day you walk off the 18th green with a birdie on your scorecard, and the next day the same hole makes you feel like you have never held a club before. The same is true in financial planning and investing. Victory and humility often arrive back to back.
The Long Game vs. The Short Game
Golfers learn quickly that one bad shot does not define a round. I’ve had rounds where I double bogeyed early and still finished strong. Investing works the same way. Markets fluctuate daily, but long term strategy matters most. Trying to recover from a bad hole with a reckless shot is the same as panic selling in a downturn. It usually compounds the mistake. The investors who thrive are those who, like patient golfers, keep their eyes on the entire 18 holes.
In 2020, markets plunged more than thirty percent in just over a month. Those who stayed the course, not unlike a golfer calmly sticking to the game plan after a shanked drive, were rewarded when markets recovered within months.
Risk and Reward—When to “Lay Up”
One of my favorite par fives on the course offers a choice. You can go for the green in two shots, flirting with the water and a sand trap, or lay up and give yourself a safe wedge in. The decision depends on your confidence, the conditions, and your tolerance for risk. In investing, the same principle applies. Sometimes it makes sense to take an aggressive position, but other times prudence (holding more cash, diversifying into bonds, or rebalancing) is the smarter play.
Failure is Part of the Process
Golf is a game of mistakes. Even professionals sometimes hit more bogeys than birdies. I’ve had shots that felt perfect off the clubface, only to watch the wind carry them into the lake. Investing is no different. Even great investors can be wrong half the time. What separates the best golfers and the best investors is not perfection. It is how they respond to setbacks. Do they panic, or do they focus on the next shot?
Know When to Walk Away
One of the hardest lessons in both golf and investing is knowing when to take your medicine. Sometimes the smart play is to drop a ball, accept the penalty stroke, and move on. I have been on holes where trying to save par from the trees only led to bigger numbers on the scorecard. Investors face the same challenge. Once you commit capital, it is tempting to defend the position at all costs. But sometimes the wisest choice is to pivot, sell, and preserve capital for a better opportunity. Admitting a mistake may sting, but resilience paired with adaptability is what separates amateurs from professionals, on the greens and in the markets.
Tools Matter, but Discipline Matters More
No golfer would play a round with just a driver. Likewise, no serious investor should put everything into one stock or one asset class. Diversification, whether in your bag or your portfolio, is essential. At the same time, equipment alone will not save you. I could upgrade my irons tomorrow, but if I do not practice my swing, my scores will not improve. Investors, too, need discipline and process, not just access to the latest products.
The Mental Game
Golf is as much mental as it is physical. Standing over a three foot putt, your biggest enemy is usually your own mind. The same is true in investing. Behavioral finance teaches us that fear and greed often derail good strategies. The investors who succeed learn to control emotions, trust their process, and stay objective even when the crowd is panicking or celebrating.
During market booms, overconfidence leads some investors to chase speculative stocks. In downturns, fear drives others to sell quality investments at the worst time. Just as in golf, your mindset can make or break your results.
Continuous Improvement
I’ve watched even accomplished golfers still practice relentlessly. The same applies to wealth. Your financial plan should not be “set it and forget it.” Tax laws change, family needs evolve, and markets cycle. The smartest investors continually refine their approach, much like a golfer making small tweaks to improve consistency.
Legacy and Perspective
Golf, like wealth, is about more than numbers on a scorecard. Some of my best memories on the course have been with family and friends, not from my lowest rounds. What stays with you is the shared experience, the lessons passed down, and the laughter after the round at the 19th hole. Wealth works the same way. The money matters, but what matters more is the legacy it supports. Passing down not just capital, but values, wisdom, and perspective.
When I walk the fairways with my kids or friends, I am reminded that golf teaches patience, humility, and resilience. Those are the same traits that sustain wealth across generations. Leaving a legacy is not about handing over assets. It is about preparing the next generation to steward them wisely, just as you prepare a young golfer to play with integrity and discipline.
Final Thought
Golf and investing are humbling because both are bigger than us. The course has the wind. The market has volatility. Both will expose your psychology and test your patience. But that is also what makes them rewarding. Success comes not from chasing perfection, but from building a process, managing risk, and keeping perspective.
At EsqWealth, we help clients approach their portfolios the way the best golfers approach the game: with strategy, resilience, and a steady hand. Because in both golf and investing, it is not about the perfect shot. It is about how you play the round, how you focus on the next shot, how you enjoy the journey, and how you can focus on the memories and the legacy you leave behind.
The information above is not intended to and should not be construed as specific advice or recommendations for any individual. The opinions voiced are for general information only and are not intended to provide, and should not be relied on for tax, legal, or accounting advice. To discuss specific recommendations for any unique situation, please feel free to contact us.
