Eyeworld

OPHTHALMOLOGY BUSINESS 86 February 2016 by Roger S. Balser How to win the great American asked Jeff Gordon what it takes to win a 500-mile race, he'd probably tell you that he drives a straighter line over the course of the race than his competition. Mr. Gordon has a game plan for every race and adapts it to the particular track layout and weather conditions. He reviews his game plan hundreds of times before the flag is waved to start the race. He knows precisely where his groove is and what line of attack will result in the fewest miles traveled over the distance of the race. When all is said and done, he travels in as straight a line as possible. Mr. Gordon also knows that the probability of executing his plan without any issues or challenges is theoretically low. At some point in the race the yellow flag will come out because someone has wrecked, C ontested in February, the Daytona 500, also known as "The Great American Race," is regarded as the most important and pres- tigious race on the NASCAR circuit. Obviously, the big question every NASCAR fan alive is asking is, "Who will win the race?" The most logical answer is the driver who drives in the straightest line. Everyone knows that the short- est distance between 2 points is a straight line. In investing, a straight line is everything working out exact- ly as you expected, and you know that doesn't happen too often. When you're driving your car from point A to point B, the shortest distance is a straight line. Yet, no one drives in a straight line even if your destination is a straight line from point A to point B. Have you ever driven on the highway and not zigzagged? You zig left to the passing lane to pass another car. Once the pass is made you zag back right into your original lane. In essence, you zigzag in an effort to go straight. This is what I do in investing. The best investors make as few changes (or zigzags) as possible and move in a straighter line than the average investor. Investors who are always trading back and forth for short-term gains generally lose because they're constantly swerving all over the road and are lucky if they don't lose control and run into a telephone pole. Let's consider a professional race car driver to further illustrate this principle. Think for a moment what legendary driver Jeff Gordon is doing to win a race. His car isn't any more superior than the rest. If you spun out, or is impeding the race. Something will happen to change his plan and require him to make a detour. But in spite of a detour, he'll go right back to his plan the mo- ment the issue has been resolved. Success in investing is like winning a NASCAR race. The fewer moves or zigzags you make in your investing, the greater success you'll realize. But first you must begin with a game plan. You've got to know what you'll do when things go "green" and also when things go "yellow." You must know the track conditions and weather conditions to determine the most advantageous time to invest and the straightest line to race. Investing will naturally bring detours, wrecks, and spin-outs, but that's life in the fast lane on Wall

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