On Our Minds: What We Learned from Naomi Osaka

Recently, the highest-paid female athlete in history withdrew from two of tennis' highest-profile tournaments: Wimbledon (to spend more time with friends and family) and the French Open (citing her mental health). Naomi Osaka hasn't always had a smooth ride. Some may remember her as the rising star who was booed at the U.S. Open in September 2018 when she beat Serena Williams, one of the greatest athletes of all time. Subsequently, Osaka earned the support of a proud Williams, and went on to win the 2019 Australian Open and a second U.S. Open title in 2020.

Osaka's tenacity and self-awareness are truly admirable. As investors, we understand the importance of knowing ourselves and looking at things long-term. Knowing what we're comfortable with (risk tolerance), what we need in the future (planning) and why we're investing in the first place (goal setting) can build confidence and, ultimately, lead to better decision-making. Osaka has all of those qualities in spades.

While it's true that we can't all be top athletes, we can be inspired by Osaka's self-awareness in action, knowing that in life and investing, this can go a long way. Here are a few things to consider when determining what's right for you:

Know yourself: What are your investment goals? What's your risk tolerance? How long is your time horizon? Understanding what type of investor you are is the first step to developing an investing plan. This can help guide your decisions about asset mix and what types of securities to invest in.

Follow your values: Investing and saving with purpose can help you stick to your plan. For example, some investors have embraced responsible investing, which considers environmental, social and governance (ESG) factors. Depending on what matters to you, that could include looking at investments through the lens of sustainability or board diversity, or avoiding “sin stocks" (such as alcohol, tobacco, gambling).

Chart your own course: Sure, there are well-established ways of doing things in almost every arena, but you don't have to follow the crowd. Understanding the cognitive biases that can influence your investing decisions—such as anchoring, confirmation bias, loss aversion and the bandwagon effect—can help you stay true to your goals.

Focus on the future: Investing is often about the long game—the more time you're invested in the market, the more time you have to grow your wealth (and to weather the market ups and downs). Naomi Osaka has a long career ahead of her, and prioritizing self-care now is key to her future success. Similarly, when making investing decisions, thinking long term can help you reach your full potential.

Make tough decisions: Depending on the situation, short-term sacrifices can help one flourish. For some investors, that could mean selling stocks earlier than expected to meet other financial obligations, or to rebalance their portfolio. There are several rational reasons for sell decisions, and learning about them can help you base your actions on logic rather than emotions.