The Secret to Fishing (Visscher)

by Steven Visscher, Mawer Investment Management

I recently went fishing for the first time. My expectations were pretty naïve – take the boat to the middle of the lake, attach a worm to a hook, and make sure to pack the tartar sauce. My more experienced fishing companions quickly showed me that things were a little more complicated.

Between the four of them, they had hundreds of different lures, hooks, and even different species of worms. I was overwhelmed with the combinations and just relied on the most experienced in the group to configure my fishing rod.

Away we went.

After just a few minutes I was the first to get a bite. I excitedly reeled in my fish, eager to see how large it was, and boast about my fishing prowess. Laughter soon broke out when I reeled in an empty hook. The worm was gone, and so was the fish.

Moments later, someone caught a fish, a real one this time. Then another. I noticed he was the only one in the group using a colourful lure. The rest of us had silver versions. I asked to borrow one of his bright and vibrant lures. The others carried on, seemingly unaware that the rookie might be on to something.

Later that morning, my theory failed when one of those silver lures helped catch a fish even larger than the first two. Maybe it was my hook? Time to try a larger one. As I struggled to switch hooks, cutting my finger in the process, someone hauled another fish into the boat.

I then expressed my frustration, “What am I doing wrong guys?”

Their response was simple, and in hindsight, pretty obvious, “You’re spending more time tinkering around with your gear and not enough time trying to catch a fish. You have the right lure, the right hook and the right worm, but you need to be more patient”.

They were right. By the end of the day I caught my first four rainbow trout.

My impatience on the water is something that investors often display. When faced with a setback, it can be tempting to abandon your strategy and mimic what others are finding to be successful. Technology stocks are skyrocketing so I should invest more money there. Next it was oilsands. Income trusts. Real estate. Ethanol. China. Gold. Stay out of the U.S. Get back into the U.S. This quest for the next big thing can be maddening, and usually futile.

Take the advice of my fishing pals – if you are following a sensible strategy, don’t tinker with it too much, and most importantly, show some patience during adversity.

Steven Visscher, Mawer Investment Management

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