Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Home / 574

Why Olympic bronze medallists are happier than silver medallists

Like many no doubt, I felt a tinge of emptiness when the Paris Olympic Games ended. Particularly after Australia’s greatest gold medal haul ever totalling 18, and a couple of weeks laden with memorable performances, and not necessarily just Australian.

The exhilaration of securing gold and becoming an Olympic champion must be indescribable, and not even Hollywood could dream up some of the drama or results that unfolded in Paris. Which I guess is what many of us love about sport.

But gold medallists aside, I found the reactions to winning silver and bronze medals equally as intriguing, as they were often mixed. I couldn’t help but notice that strikingly, many bronze medallists seemed to be happier with their prize than silver medallists. And it turns out that various studies over time have confirmed this counter-intuitive response.

The science behind medallists and happiness

Studies of facial expressions at medal ceremonies, and first reactions on crossing the line or touching the wall across multiple Olympic Games and World Championships, reveal greater overall levels of happiness for those winning a bronze medal compared to those taking out the silver. That silver to many athletes feels like they have lost, especially if they had been favoured to win gold. While bronze medallists often think they have won by making it onto the podium ahead of the rest of the field.

Like everything, there is a technical term for this phenomenon. It is known as “counterfactual thinking”, which is a psychological term for imagining alternative outcomes that could arise but don’t.

Many silver medallists experience “upward counterfactual thinking”, where they focus on what could have been had they not fallen short, and hence a feeling of being unsatisfied with their result. Bronze medallists, on the other hand, engage in “downward counterfactual thinking”, whereby they think of all those behind them who didn’t win a medal, and therefore think of themselves as winners, and are more satisfied with their outcome.

Where the silver medallist feels an opportunity has been missed, the bronze medallist has seized theirs.

Now there’s always an exception to every rule, or observation in this case, and there was no better example of that than the sheer emotion and excitement displayed by Australian Jessica Hull, who took out the silver medal in the women’s 1500 metres track event. And no wonder, given it took the current world and Olympic champion, and world record holder in Faith Kipyegon to beat her. Jessica knew she was a winner.

Counterfactual thinking and investing

All this got me thinking about other areas of life where people compare outcomes to what might have been, where the phenomenon of counterfactual thinking can take hold. It is not just limited to sport. Take investing.

Silver medallist type thinking might occur with those investors who show dissatisfaction with the performance of their portfolio compared to better performing possibilities they had considered but didn’t take. Rather than being satisfied with solid returns achieved, they show regret for not having gone down a different path and achieved better. This may lead to regret aversion and more passive investing in the future, to avoid the fear of not making optimal decisions.

The bronze medallist aligned investor however, is generally happy with modest portfolio gains, knowing that the alternative could have been losses. This downward counterfactual thinking can spur confidence and satisfaction with their investment strategies.

Identifying where one sits on the silver-bronze-medal spectrum of thinking, can assist investors in improving their approach to investing.

By focussing less on missed opportunities, investors can minimise biases and tone down the emotion in investing, which leads to more rational decision making. Equally, more realistic goal setting instead of striving for super returns, should reduce stress levels. And taking a leaf out of the bronze medallist mindset would place a priority on risk management strategies to avoid loss making situations.

Ultimately, the goal for any investor should be to adopt a healthy and balanced investment approach, to achieve a level of comfort and satisfaction that they can be happy with. And that would be a gold medal performance.

 

Footnote: Looking at the final medal tally in Paris. Among the top ten nations, the Netherlands had the highest bronze to silver ratio of 171% (7 silver, 12 bronze), while Germany had the lowest at 62% (13 silver, 8 bronze). So I guess it’s party time for the Dutch, while it’s chin-up for the Germans. The ratio for Australia was 84% (19 silver and 16 bronze, to go with our 18 gold).

Tony Dillon is a freelance writer and former actuary. This article is general information and does not consider the circumstances of any investor.

 

5 Comments
lyn
August 26, 2024

Tony, liked analagy medals/investing/podium bronze happiness. Bronze catch-cry --- "don't be greedy, take gain now", come to know if say it aloud ...act. Your last paragraph re like Gold, pipping out to bronze no shame but missing bronze to a "4th" in investing may be a bust and just like Olympic sportspersons who came 4th and 4 yrs older next Olympics may miss their dream, investors get older & may miss a Gold moment. A Bronzer gets the buzz, brains recognise it, some say benefits brain for all sorts of things.There's comments these columns of wonderful great age stated alongside strategy/opinion, wager they'd be Bronzers! No doubt Gold medallists too but not gist of article.

Roger
August 26, 2024

In team sports, silver medalists are the losers in their final. Bronze medalist in team sports invariably win their play-off for 3rd and 4th. So by nature of the team competition, you need to lose to earn silver, but win to earn bronze. This no doubt accounts for much of the bronze recipients reactions.

Tony Dillon
August 24, 2024

A more stark example of the second place-getter blues you will not find, than with the recently completed Women’s Tour de France. I watched this after I had submitted this piece.

Demi Vollering of the Netherlands, won the 8th and final stage completed on Alpe d’Huez, but finished second overall for the Tour. She was totally despondent in both podium presentations, while the overall winner and third-placed getter (Kasia Niewiadoma and Pauliena Rootjakkers), were both over the moon.

For those interested, the final stage with presentations is still available on SBS On Demand.

Simon
August 24, 2024

A common phrase in recent times around mindset and stoicism:
Think like a bronze medallist, not a silver.
Glad to hear it’s now evidence-based.

Martin Mulcare
August 22, 2024

Interestingly, with reference to Tony's footnote, Australia has traditionally been a "party time" participant at the Olympics. Before the 2024 Olympics, according to Wikipedia, Australians had won 216 bronze medals compared with 180 silver medals - a remarkable historical ratio of 120%.

 

Leave a Comment:

RELATED ARTICLES

Three reasons why optimism pays for investors

A tonic for turbulent times: my nine tips for investing

banner

Most viewed in recent weeks

Finding the best income-yielding assets

With fixed term deposit rates declining and bank hybrids being phased out, what are the best options for investors seeking income? This goes through the choices, and the opportunities and risks involved.

What history reveals about market corrections and crashes

The S&P 500's recent correction raises concerns about a bear market. History shows corrections are driven by high rates, unemployment, or global shocks, and that there's reason for optimism for nervous investors today. 

Howard Marks: the investing game has changed

The famed investor says the rapid switch from globalisation to trade wars is the biggest upheaval in the investing environment since World War Two. And a new world requires a different investment approach.

Welcome to Firstlinks Edition 605 with weekend update

Trump's tariffs and China's retaliatory strike have sent the Nasdaq into a bear market with the S&P 500 not far behind. What are the implications for the economy and markets, and what should investors do now? 

  • 3 April 2025

Designing a life, with money to spare

Are you living your life by default or by design? It strikes me that many people are doing the former and living according to others’ expectations of them, leading to poor choices including with their finances.

World's largest asset manager wants to revolutionise your portfolio

Larry Fink is one of the smartest people in the finance industry. In his latest shareholder letter, the Blackrock CEO outlines his quest to become the biggest player in private assets and upend investor portfolios.

Latest Updates

Investment strategies

An enlightened dividend path

While many chase high yields, true investment power lies in companies that steadily grow dividends. This strategy, rooted in patience and discipline, quietly compounds wealth and anchors investors through market turbulence.

Investment strategies

Don't let Trump derail your wealth creation plans

If you want to build wealth over the long-term, trying to guess the stock market's next move is generally a bad idea. In a month where this might be more tempting than ever, here is what you should focus on instead.

Economics

Pros and cons of Labor's home batteries scheme

Labor has announced a $2.3 billion Cheaper Home Batteries Program, aimed at slashing the cost of home batteries. The goal is to turbocharge battery uptake, though practical difficulties may prevent that happening.

Investment strategies

Will China's EV boom end in tears?

China's EV dominance is reshaping global auto markets - but with soaring tariffs, overcapacity, and rising scrutiny, the industry’s meteoric rise may face a turbulent road ahead. Can China maintain its lead - or will it stall?

Investment strategies

REITs: a haven in a Trumpian world?

Equity markets have been lashed by Trump's tariff policies, yet REITs have outperformed. Not only are they largely unaffected by tariffs, but they offer a unique combination of growth, sound fundamentals, and value.

Shares

Why Europe is back on the global investor map

European equities are surging ahead of the U.S this year, driven by strong earnings, undervaluation, and fiscal stimulus. With quality founder-led firms and a strengthening Euro, Europe may be the next global investment hotspot.

Chalmers' disingenuous budget claims

The Treasurer often touts a $207 billion improvement in Australia's financial position. A deeper look at the numbers reveals something less impressive, caused far more by commodity price surprises than policy.

Fixed interest

Duration: Friend or foe in a defensive allocation?

Duration is back. After years in the doghouse, shifting markets and higher yields are restoring its role as a reliable diversifier and income source - offering defensive strength in today’s uncertain environment.

Sponsors

Alliances

© 2025 Morningstar, Inc. All rights reserved.

Disclaimer
The data, research and opinions provided here are for information purposes; are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. Morningstar, its affiliates, and third-party content providers are not responsible for any investment decisions, damages or losses resulting from, or related to, the data and analyses or their use. To the extent any content is general advice, it has been prepared for clients of Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), without reference to your financial objectives, situation or needs. For more information refer to our Financial Services Guide. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Articles are current as at date of publication.
This website contains information and opinions provided by third parties. Inclusion of this information does not necessarily represent Morningstar’s positions, strategies or opinions and should not be considered an endorsement by Morningstar.