Current market environment performance of dynamic, risk-managed investment solutions.
By Will Hubbard
Investing is a marathon, not a sprint—but it’s easy to lose focus when markets seem to reward short-sighted moves. To stay on course, investors need a clear purpose, a disciplined process, and the ability to manage risk along the way.
A “mosaic moment” with a message
In the CFA curriculum, the mosaic theory teaches analysts to bring together disparate pieces of information—fundamentals, anecdotal evidence of a company’s growth, a random comment from an employee in a public setting, etc.—to make an informed investment decision. It’s a way of thinking that resonates with me not just in stock analysis but also in understanding investor behavior.
This past weekend, I had a “mosaic moment” of my own. A podcast and a message in church—two very different sources—both prompted the same question: “What are you running for?” That question sparked a reflection on how easily investors can lose their way when they forget the purpose of their financial journey and their plan to complete it.
The risk of chasing short-term wins
We’ve all seen it—investors piling into hot stocks, often near their peak, without an exit plan or even a clear idea of what success looks like. The allure of a quick win often overrides sound judgment. But investing without discipline is like starting a race without knowing where the finish line is.
This mindset can lead to emotional decision-making and poor outcomes. From around 2000 to 2013, the S&P 500 saw two major drawdowns of about 50% each. That period was devastating for many long-term investors who followed a “just buy the market” approach. Painful losses prompted emotional selling, often at the worst possible time.
Staying in the race takes discipline and process
Whether you’re an active or passive investor—or a financial adviser or financial planner working with clients—you know that most bad investment decisions come from emotion, especially during market downturns. That’s why risk management and process are essential. They don’t eliminate the volatility, but they help investors stay in the race.
In a recent podcast episode I listened to, hedge fund manager and AG Capital founder Asim Ghaffar talked about the importance of maintaining a long-term horizon as a macro manager. He noted that many highly qualified professionals—from firms like Goldman or Millennium—launch funds with hundreds of millions in backing and teams with strong pedigrees. But in a few years, they start chasing returns. Eventually, they experience a drawdown that damages the business beyond repair. The manager loses confidence in the strategy and, as a result of poor performance, shuts down the fund.
Ghaffar’s point was clear: It’s challenging to build a multigenerational investment business, one that stands the test of time and instills confidence in a process designed to generate compelling, risk-managed returns. After all, how can you finish a marathon if you lose faith in your training when the course gets tough?
Reaching the finish line takes endurance, perseverance, and long-term focus
The message at my church on Sunday reinforced the same idea. The pastor’s sermon focused on Hebrews 11 and the individuals who lived their lives by faith—Abraham, Moses, Noah, and others—who have finished the course and are now in eternity, encouraging us on. He then tied in Hebrews 12:1, which begins, “Since we are surrounded by so great a cloud of witnesses,” referring to all those who have gone before us. The verse continues, “let us run with endurance the race that is set before us.” These faithful witnesses are now in heaven, cheering us on as we continue to run the race—the marathon—toward eternity.
The parallels between this scripture and the importance of a long-term mindset are striking.
The lasting example of the great investors
Think of Warren Buffett, who has held many investments for decades. Or Cliff Asness, founder of AQR, who continues to emphasize the importance of systematic, risk-managed investing. Their approaches differ, but they share a commitment to process and patience—cornerstones of long-term success.
Their consistency offers a model for investors to follow: Process over impulse. Risk management over reaction. Purpose over performance-chasing.
Invest with a plan—and the right partner
Quick gains or chasing a hot hand might feel good in the moment, but the real rewards come to those who manage risk, stay disciplined, and invest with intention. That includes keeping drawdowns in check, ideally to within 20% or 30%, to reduce the chance of panicked, emotion-driven investment decisions.
Investors should then look to partner with firms that have created a lasting process, one designed to run a great race and complete the marathon. Flexible Plan Investments (FPI) has developed investment strategies to support that kind of long-term journey. With a foundation of dynamic risk management and decades of experience navigating changing markets, FPI is committed to helping investors stay on course—through both smooth stretches and challenging terrain.
So, “What are you running for?” In investing and in life, that’s a question worth answering before you take your next step.