Two weeks before this episode aired, Rory McIlroy won the Masters championship for the second time, and a back to back win at that -- a veryrare feat in golf. Rory became the fourth to ever do it, alongside the best golfers of all time Jack Nicklaus and Tiger Woods (Nick Faldo also went back to back in 1988 and 1989). Heading into the final day of the tournament, Rory had a commanding six shot lead, but what Matt noticed was how Rory dealt with his success through the first three days of the tournament. Rory didn't change his decision making and start playing to not lose. He stuck tightly to his process, and repeated the things that got him into the lead in the first place.

Investors can learn a lot from this approach. As Matt points out, most investing mistakes aren't made when markets are down, they are made when markets are up, and investors are having success. It's easy to become overconfident, to think that you have "figured out" the market. Rory indicated in his press conferences that he respected the golf course for what it was, and didn't suppose that he owned it or had completely mastered it. He stuck to decision making that would put him in a position to consistently score well, while avoiding risky plays that could cost him several strokes if they didn't work out. He also did a good job tuning out the noise and the excitement from the press contemplating his second win before it happened.

Investors deal with similar problems. Markets are unpredictable, and good investors don't try to figure them out -- they try to make consistently solid decisions that put them in a position to make good returns, rather than place risky bets with big upsides and big downsides. The markets are full of noise, like the press at the Masters tournament, and good investors learn to ignore the noise and focus on their process. They don't compare themselves or pay too much attention to what others are doing.

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