Small but consistent gains: Lessons from an Olympics strategy

Shops are opening, families are reuniting and the little things of everyday life are slowly coming back.

This gradual normalization throughout communities is now set to happen on a grander scale. This month, the world will reunite at the 23rd edition of the Summer Olympic games. It is fitting to hold this event, despite the lingering fears of a pandemic resurgence. In every Olympics, stories emerge of struggles, resilience, and triumphs. We could all use some inspiration given the last year and a half.

One such story describes the life’s work of Dave Brailsford – the Performance Director for the British Cycling team from 2003 to 2014.

Prior to bringing on Brailsford, British Cycling was hardly even a concept. Yet, during the 2008 Beijing Olympic Games, this team went on to produce a record eight gold models. British Cycling followed that up by winning another eight gold models on home turf during the 2012 London games. Along with the incredible achievement of the athletes, it was a big win for Brailsford. His approach to finding 1% improvements in everything they did – the bike seats, the fabric of the uniform, even the type of mattress team members slept on – made all the difference.

While not to the same extreme, your Open Access investment account aligns with Brailsford’s principles. Your portfolio’s performance reflects an accumulation of small but consistent gains, not the result of gambles and lucky breaks in the stock market. Your nest-egg is truly “invested” rather than subject to speculation.

In addition, like the British Cycling team, the end results are a byproduct of a sound strategy. Brailsford focused on the inputs instead of the outputs. He understood that every Olympic athlete sets out to take home the gold. However, it is only by sticking to the process, through setbacks, small wins and continuous improvement, that the end goal is achieved.

The investment team at Open Access has one simple goal. We aim to compound your wealth at the best possible rate over time. To that end, it is important to stay true to the strategy. For you, that means putting some savings away each month, and keeping boom-and-bust emotions out of your investment decision making process. For us, that means managing both the return and the risk of your investments, and keeping your fees below average.

What is our process telling us today? Based on our recent investment outlook, we believe that markets will get choppier into the Fall. Fortunately, global economic indicators remain strong, with recession a remote possibility for 2021. This should put a floor under stock prices. However, from inflation, to COVID variants, to stretched valuations, the risk of 5 to 10% corrections is certainly heightened.

As a result, we recently took action to fortify the defensiveness of your Portfolio. Specifically, in mid-June we invested in two bond strategies managed by Pacific Investment Management Company (PIMCO). With a track record of outperformance, we are confident that including one of the world’s preeminent money managers into your Open Access account will benefit you in the years ahead.

It is another one of the inputs that will lead to achieving your end goal.

We wish you a safe and enjoyable rest of the summer.