Investing through the long run: Insights from endurance running

Long-distance running is an endurance sport that offers lessons that resonate with investing. In Born to Run, Christopher McDougall illustrates how elite ultrarunners thrive through discipline, adaptability and a love for the journey. These traits align closely with successful investing, where endurance, process consistency and risk management are key. As Rick Mears, an American racecar driver, famously said: “In order to finish first, first you must finish.” This principle underscores the importance of survival in both running and investing, as staying in the race is a prerequisite for achieving long-term success.

Compounding endurance and wisdom

Unlike sprint running where youthful energy and explosiveness dominate, endurance running demonstrates that experience often wins over youth. Research by Pimentel et al. (2003) found that well-trained older runners (average age 61) perform as efficiently as much younger runners (average age 26), despite having lower overall aerobic capacity.

Similarly, in investing, knowledge compounds over time. Building and expanding one’s circle of competence is crucial. Each market cycle and every business studied enrich an investor’s knowledge library, deepening expertise and sharpening judgment. In both running and investing, there’s wisdom in pacing. As the saying goes, “to go faster, you need to slow down.” Long-distance runners balance high- and low-intensity sessions to build endurance gradually, much like disciplined investors adhere to a sound strategy and steady capital allocation to achieve long-term success. Small, consistent efforts, whether in running or investing, compound over time to deliver meaningful outcomes.

Staying in the race

Runners know that pushing too hard early in the race often leads to injury or burnout. When dealing with investments, aggressive risk-taking can lead to permanent loss of capital, a risk that prominent investors, including Warren Buffett and Howard Marks, frequently caution against. A focus on capital preservation ensures that investors remain in the race long enough to benefit from compounding returns, much like runners who pace themselves to reach the finish line strong.

Mental toughness and adaptability

Long-distance running is as much a mental challenge as a physical one. Runners frequently encounter unexpected obstacles such as tough weather, grueling terrain or moments of self-doubt. Success comes from adaptability and mental resilience, staying focused on the goal despite temporary setbacks. Challenges like these arise in investing during periods of market volatility and uncertainty. Fear and greed often drive extreme behaviour of Mr. Market, but those who remain adaptable and focused on long-term objectives are better equipped to navigate through the storm.

Humility and ego management

Runners quickly learn that the course has a way of humbling even the most confident athletes. Whether it’s underestimating a hill or pushing too hard on a hot day, overconfidence can lead to setbacks. Respecting the journey and staying humble is key to consistent performance. As with running, overconfidence when investing can be costly. Successful investors recognize the limits of their circle of competence, acknowledging mistakes and making necessary adjustments to achieve superior outcomes.

Recovery and rebalancing

Hydration and nutrition during the race are critical, but equally important is post-run recovery to avoid injury and maintain peak condition. Periodic system checks – evaluating whether there’s any discomfort, signs of dehydration or creeping fatigue – are part of a successful runner’s routine. Attribution analysis, risk reassessment, and rebalancing serve a similar purpose in investing. They ensure that portfolios remain aligned with long-term goals and avoid overexposure to excessive or unintended risk.

Embracing and trusting the process

Experienced runners often speak of finding joy in the act of running itself, rather than focusing solely on finishing times. The Tarahumara people, as McDougall describes, run for the love of it, finding fulfillment in the process. This philosophy resonates in investing, where the process is deeply rewarding. However, focusing on the process serves a higher purpose: delivering superior value. Even the best strategies will face periods of underperformance. Endurance runners trust their training, knowing that results come over time. A well-crafted investment strategy is also like this in that it delivers superior value over the full cycle. The real risk lies in abandoning a sound strategy during temporary setbacks, which can lead to irreversible mistakes.

Both running and investing are endurance activities. Success comes to those who stay committed to their process, manage risks thoroughly and adapt to challenges. Beyond the parallels, there are also synergies between endurance running and investing. Running helps nurture and enhance one’s discipline, humility, patience and mental toughness. It also offers a unique mental space for reflection. The steady rhythm of a long run on a quiet sunny morning creates the perfect environment to think deeply about market developments or investment strategies. And finally, as Born to Run highlights, staying active is crucial to maintaining vitality: « We don’t stop running because we get older; we get older because we stop running. » It’s a reminder that endurance, whether in life or investing, is about staying engaged and embracing the journey.