“Everyone has a plan until they get punched in the face.” Mike Tyson, former heavyweight champion of the world
No one associates Mike Tyson with financial wisdom, but this little gem is something to remember inside and outside of the ring. If you have ever seen a prize-fight the one thing you see immediately is that the boxers have their hands up, protecting their heads and faces. They know that they’re going to get hit, they just don’t want to be on the other end of that knock-out punch.
Which is something that investors should also do. Unfortunately, they often forget Tyson’s sage advice and get greedy during “bull” markets, letting their guards down, worried that others may be doing better. That’s when Mr. Market delivers the uppercut and knock them out, perhaps permanently or at least struggling for years to regain their balance.
The first rule for investors is to avoid big losses. In finance and in boxing, keep your guard up and stay nimble.
Arie J. Korving, a CERTIFIED FINANCIAL PLANNER™ professional, has been delivering customized wealth management solutions to his clients for more than three decades. Prior to co-founding Korving & Company, he was First Vice President with UBS Wealth Management and held management positions with General Electric.