In the past year, I\u2019ve cycled thousands of kilometers solo, pursuing world records in ultra-endurance cycling. When I\u2019m not pedalling across continents, I sit in Morningstar\u2019s fund research team in London. The long hours alone on the bike have given me plenty of time to ruminate on the following parallels between achieving success in ultra-cycling and investing.<\/p>\n
1. Set long-term, realistic goals \u2013 and build towards them<\/p>\n
Success in both cycling and investing starts with clear, achievable goals. My big objective is competing in the Transcontinental Race in August 2025, supported by weekly training targets and challenging solo rides. This structure prepares me physically and mentally.<\/p>\n
Investors also need long-term financial goals, such as retirement or education funding, to guide their journey. Smaller, manageable steps \u2013 regular saving, diversified asset allocation, disciplined rebalancing \u2013 become part of a cohesive strategy rather than disconnected actions.<\/p>\n
Goal-setting protects against short-term impulses. Just as I resist pushing too early in a ride, investors should resist chasing quick gains.<\/p>\n
2. Manage emotions \u2013 good and bad<\/p>\n
Ultra-cycling is an emotional rollercoaster. When you feel invincible, the temptation is to push too hard, which risks burnout later. As ultra-cycling legend and friend Emily Chappell advises: \u201cWhen you feel bad, eat. When you feel good, slow down.\u201d Similarly, investors must avoid overconfidence during bull markets, which can lead to risky moves just before a downturn.<\/p>\n
Keeping grounded in the face of success tends to lead to better long- term outcomes. During low points \u2013 like when I added 30km by a wrong turn during my Germany north-to-south record attempt \u2013 my instinct was to panic and speed up. But experience taught me to stay calm and pace myself. Investors face similar traps when losses tempt them to chase recovery. Emotional resilience, supported by systems that limit impulsive decisions, often separates those who succeed.<\/p>\n
3. Stick to the facts<\/p>\n
Reliable data is critical in cycling and investing. I rely on GPS tracking, heart rate and elevation profiles to manage effort and adapt strategy. Focusing on the data also prevents me from reacting purely to perceived fatigue or emotion. Similarly, investors need solid data and research to evaluate assets, risks and market trends. Poor information can lead to bad timing, losses, or missed chances. In both fields, data is a stabiliser that helps navigate complexity and target long-term success.<\/p>\n
4. Preparation trumps prediction<\/p>\n
Success isn\u2019t about predicating every twist \u2013 unexpected obstacles will arise. In my upcoming Sweden north-to-south attempt I\u2019ll ride through remote regions, I\u2019ve mapped routes and alternatives for food, shelter and gear. I carry contingencies for clothing and bike repairs. Preparation doesn\u2019t remove uncertainty but improves the odds when plans diverge from reality. <\/p>\n
Investing shares in this principle. No one can predict markets or pick winners with certainty. At Morningstar, we conduct deep due diligence \u2013 evaluating managers\u2019 processes, fees, team experience and alignment with investors. The aim is to stack the deck through preparation, not predicting what the market will do tomorrow.<\/p>\n
5. Know the edge \u2013 and when it\u2019s disappearing<\/p>\n
Understanding a fund manager\u2019s edge \u2013 the repeatable advantage \u2013 is essential to distinguish skill from luck and assess sustainability.<\/p>\n
In my Scotland record attempt, a mechanical issue forced me to ride all day on my big front cog, which meant expending much more effort on hills. To anyone tracking online, this looked like a strong, sustainable performance, but the consequences hit on day two, when my performance dipped.<\/p>\n
The lesson? From the outside, performance can be deceiving. Similarly, a fund may outperform temporarily, but without knowing the drivers, investors risk overestimating long-term success probabilities. Was success due to insight, specific market conditions, or a now-lost advantage? Just as unsustainable effort in cycling eventually fails, investing success without an enduring edge fades. Continual reassessment of that edge is key to staying ahead.<\/p>\n
Kenneth is cycling to raise money for the Down\u2019s Syndrome Association.<\/a><\/p>\n