From Kendall Bauer
Dear Investor,
Consistency is king. Developing strong financial habits early on lays the groundwork for long-term investing success. In our first letter, we explored the importance of time. This time, we turn our focus to its powerful companion: Consistency.
In 2024, while training for my first-ever ultramarathon — a 50-mile trail run on the Ice Age Trail in the Southern Unit of Wisconsin’s Kettle Moraine State Forest — I dove deep into the world of elite endurance athletes. I found myself studying the routines of legends like Courtney Dauwalter, Kilian Jornet and Jim Walmsley.
After hours of listening to podcasts, watching documentaries and reading interviews, one theme stood out: Consistency. These athletes may be gifted with extraordinary physical abilities, but it was their relentless commitment to daily, disciplined effort that propelled them to the top.
Learn more
What is Dollar Cost Averaging? a Money Talk Video with Isabelle Wiemero
Dollar Cost Averaging, from Investor.gov
Dollar-Cost Averaging Explained with Examples and Considerations, from Investopedia
The Pros and Cons of Dollar-Cost Averaging, from the Financial Industry Regulatory Authority
That message resonated with me. As I applied it to my own training, I realized the same principle could be carried into investing.
The profound truth is that progress is built through daily discipline, not dramatic moments. These athletes didn’t become legends overnight. Their achievements were the result of steady, often grueling effort — brick by brick, mile by mile.
That same mindset applies to investing. You don’t need a windfall to build wealth. What you need is rhythm, patience and repetition. One of the most effective ways to embody this approach is through dollar-cost averaging.
Dollar-cost averaging means investing a fixed amount of money at regular intervals, say monthly, regardless of market conditions. This strategy helps minimize emotional decision-making and removes the pressure of trying to time the market perfectly. Over time, dollar-cost averaging can smooth out the highs and lows by naturally buying more shares when prices dip and fewer when they rise.
Like the tortoise edging past the hare, consistent effort often outperforms erratic brilliance. It’s not glamorous, but it’s sustainable. And sustainability wins over time.
Dollar-cost averaging also shines when investing larger sums. Throwing a lump sum into a red-hot market can be nerve-wracking if prices tumble days later. On the flip side, waiting endlessly for the “perfect” entry point can lead to analysis paralysis. Dollar-cost averaging offers a balanced, steady path forward.
Step one? Just get started. Enroll in your workplace retirement plan. Open that Roth IRA or brokerage account. Put a simple plan in place — one that aligns with your goals — and begin building the habit of consistent investing. It doesn’t have to be perfect, it just has to start. You can always adjust and refine it as you go.
Just as important, this approach trains your mindset. It helps you shift from reacting to planning — from speculating to building. It nurtures discipline, a skill that will serve you well across life’s many financial goals: Saving for a home, a car, a trip, a wedding, a retirement.
Over time, you’ll find that consistency doesn’t just build portfolios — it builds character.
Until next time,
Kendall
Kendall Bauer is vice president and investment advisor at Landaas & Company, LLC.