Long-term Strategy: The Key to Winning—In Baseball and Wealth Management
01/24/2025
Before they secured two world series championships in 2017 and 2022, the Houston Astros were major league underdogs. They faced season after season of losses and disappointments, and finished the 2013 season with a 51-111 record – the worst in Astros history.
This led the team to a crossroads that we all face at some point in our lives: continue down a path that doesn’t seem to be working, or forge a new one.
For the Astros, they chose to pivot and create a long-term strategy that gave their team roots and consistency, and ultimately led to their success.
Just like building a winning team, wealth management requires planning, patience, and a clear vision for success. Here are some takeaways from the Astros’ transformation that you can use to forge your own financial game plan:
Their approach is a lesson in longevity for investors, too. Start by identifying your top goals –like retirement, family legacy, or charitable giving – and plant the seeds now that will support those goals later on.
Take a page from the Astros’ playbook and make strategic moves that will lead to your long-term success.
In 2011, the team began using analytics in everyday decisions, allowing them to put players in situations where they would perform best. These decisions weren’t always easy or natural, so the team also hired additional coaches who understood the analytics, and could translate their significance to everyone else on the team. After a couple years, those data-backed decisions really began to pay off.
Just like the Astros hired professionals to help them build a game plan backed by numbers, a wealth planner uses data to help optimize your portfolio and minimize risks. Planners are tracking markets, trends and economic indicators to make the best decisions for their clients. Working with professionals can help ensure that your financial strategy is rooted in research and customized for your needs.
The Astros endured weaker seasons to build a foundation for sustained success. In your own wealth management plan, staying committed during market downturns can also lead to long-term growth. Those exciting, quick returns that everyone is talking about don’t always pay off in the long run.
Building wealth is a marathon, not a sprint. Aim for a strategy with staying power, and have patience while you wait for the payoff.
Your wealth planner, CPA, and attorney form the "team" that helps you execute your wealth strategy. But remember, it can take time to find the best professional team for you. Don’t be afraid to seek out references, meet with multiple people and go in a separate direction if someone you’re working with isn’t the best fit. Finding the right people to guide you in your wealth management goals are well worth the effort.
But you don’t have to do it alone. Schedule a consultation to take the first steps toward building your winning strategy.
This is provided for informational purposes. The views expressed herein are those of the author and do not necessarily reflect the views of Steward Partners or its affiliates. All opinions are subject to change without notice. Neither the information provided, nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. All investing involves risk including possible loss of principal. Past performance is no guarantee of future results.
This led the team to a crossroads that we all face at some point in our lives: continue down a path that doesn’t seem to be working, or forge a new one.
For the Astros, they chose to pivot and create a long-term strategy that gave their team roots and consistency, and ultimately led to their success.
Just like building a winning team, wealth management requires planning, patience, and a clear vision for success. Here are some takeaways from the Astros’ transformation that you can use to forge your own financial game plan:
Drafting a Game Plan: Setting Clear Goals
The Astros’ turnaround strategy was a unique one, and it required trust from the players, stakeholders and fans. Instead of spending a fortune on superstar players who were already at the top of their game, the Astros focused on discovering and nurturing young talent, and building a cohesive team that would only get better with time.Their approach is a lesson in longevity for investors, too. Start by identifying your top goals –like retirement, family legacy, or charitable giving – and plant the seeds now that will support those goals later on.
Take a page from the Astros’ playbook and make strategic moves that will lead to your long-term success.
Data-Driven Decisions: The Power of Research and Expertise
The Astros didn’t rely on instinct or guessing to guide player development and investments; they looked at the numbers.In 2011, the team began using analytics in everyday decisions, allowing them to put players in situations where they would perform best. These decisions weren’t always easy or natural, so the team also hired additional coaches who understood the analytics, and could translate their significance to everyone else on the team. After a couple years, those data-backed decisions really began to pay off.
Just like the Astros hired professionals to help them build a game plan backed by numbers, a wealth planner uses data to help optimize your portfolio and minimize risks. Planners are tracking markets, trends and economic indicators to make the best decisions for their clients. Working with professionals can help ensure that your financial strategy is rooted in research and customized for your needs.
Staying the Course: Patience Pays Off
When the Astros changed their approach, they knew it wasn’t going to yield immediate results. They began investing in younger players who showed potential, instead of pennant players who were far more expensive. That gave them time to pour practice and energy into their players, and slowly build a cohesive, winning team. It took faith, but their commitment to a longer-term strategy paid off.The Astros endured weaker seasons to build a foundation for sustained success. In your own wealth management plan, staying committed during market downturns can also lead to long-term growth. Those exciting, quick returns that everyone is talking about don’t always pay off in the long run.
Building wealth is a marathon, not a sprint. Aim for a strategy with staying power, and have patience while you wait for the payoff.
Teamwork and Trust: Your Financial "Coaching Staff"
No successful team owes its victory to one star player. Behind every great team is a skilled coaching staff that can identify strengths and weak points, and help their team see a greater overall vision.Your wealth planner, CPA, and attorney form the "team" that helps you execute your wealth strategy. But remember, it can take time to find the best professional team for you. Don’t be afraid to seek out references, meet with multiple people and go in a separate direction if someone you’re working with isn’t the best fit. Finding the right people to guide you in your wealth management goals are well worth the effort.
Your Winning Wealth Strategy
The Astros have proven that long-term planning wins championships. Likewise, a thoughtful, disciplined approach to wealth management can help you pursue your financial goals.But you don’t have to do it alone. Schedule a consultation to take the first steps toward building your winning strategy.
This is provided for informational purposes. The views expressed herein are those of the author and do not necessarily reflect the views of Steward Partners or its affiliates. All opinions are subject to change without notice. Neither the information provided, nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. All investing involves risk including possible loss of principal. Past performance is no guarantee of future results.