The Connection Between Flying a Plane and Common Sense Investing 

At a recent convention, a company unveiled an FAA-certified flight simulator at their booth, challenging visitors with the question, “Can you fly the plane?” This unexpected combination of flight simulation and investing piqued the curiosity of many attendees.

But what does flying an airplane have to do with common sense investing?

“Fly the Plane” – A Fundamental Lesson in Aviation and Investing

During flight training, an instructor emphasized a fundamental principle: “When things go wrong, keep flying the plane.” At first, this advice seemed puzzling, but its importance became clear through a memorable experience. 

While practicing dead reckoning, the instructor introduced an unexpected twist. While the student pilot was engrossed in searching for a landmark on the ground, the instructor silently switched off a breaker, triggering an alarm in the plane. Startled, the student turned to investigate the commotion and noticed a flashing red light on the instrument panel. 

As the student searched for the source of the alarm, the instructor tapped them on the shoulder and pointed out the front window. To their shock, the Cessna they were piloting was in a 45-degree bank, hurtling toward the ground. In their fixation on the alarm, they had forgotten their primary task—flying the plane. The instructor’s stern reminder, “Fly the plane!” served as a lesson etched into memory. 

Handling Emergencies in the Sky and in the Market 

In aviation, emergencies of various kinds are a routine occurrence. Modern aircraft bristle with technology that often triggers yellow or red lights, buzzers, or verbal warnings of potential issues. Most of these incidents are minor and require attention. It could be a pilot forgetting to switch fuel tanks, drifting off course, or equipment acting up.

Regardless of the situation, the first thought in a pilot’s mind should be to keep flying the airplane. In other words, don’t allow minor distractions to overshadow the most critical task. Tragically, some pilots have lost their lives due to neglecting this fundamental principle during moments of distraction. 

Applying the “Fly the Plane” Principle to Common Sense Investing 

Investors face a barrage of alarms in the form of daily news updates. The temptation to react impulsively to these warnings and deviate from their investment strategy is ever-present. It’s crucial for investors to recognize that their investment portfolio is akin to an airplane—it’s designed to transport them to their financial destination. 

If an investor has established a well-thought-out plan, the distractions encountered on the journey should be manageable. When the news bombards them with dire alerts, it’s essential to remain focused, trust the established plan, address distractions as necessary, and, above all, keep flying the financial plane.

In conclusion, the seemingly unrelated worlds of aviation and investing share a common principle: during unexpected challenges or distractions, whether in the cockpit or the financial markets, the key is to stay focused on the primary objective and “keep flying the plane.” By applying this common sense approach, both pilots and investors can navigate their respective domains safely and successfully.

 Save as PDF