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Introduction

Roger Federer—arguably the greatest tennis player of all time—gave a speech last year that wasn’t just inspiring; it was surprisingly insightful for investors too.

In his speech, Federer shared this remarkable stat:

“In the 1,526 singles matches I played in my career, I won almost 80% of those matches. But you know what percentage of points I won in those matches? Only 54%.”

Think about that. Even as one of the most dominant players in tennis history, Federer lost nearly half the points he played.

His takeaway? Don’t dwell on every point. Losing is part of the game—even when you’re one of the best. What matters is staying consistent, keeping composure, and stacking up small advantages over time.

Now Replace “Tennis” with “Investing”

Federer’s 54% point-win rate maps surprisingly well to the daily performance of the stock market.

This consistency principle becomes even more powerful when you consider the cost of stepping off the court. A $10,000 investment in the S&P 500 in 1980 would be worth over $800,000 today—but only if you stayed in the match. Miss just the 10 best trading days over those 43 years, and you’d have half that amount. Like Federer couldn’t afford to skip crucial points within winning matches, investors can’t afford to sit out the market’s best days, which often come immediately after its worst.

Like Federer, the market doesn’t need to win every point (or every day). What matters is staying in the game and letting compounding work its magic.

The Lesson: Stay in the Match

Federer didn’t become a legend by obsessing over every lost point. He focused on the next serve, the next set, the next match.

Successful investors do the same. They don’t panic over a bad day, a down week, or even a tough year. They focus on playing the long game.

Because in both tennis and investing, marginal advantages, applied consistently, lead to greatness.