Become an Investing Wizard by Reading Harry Potter

Posted in Bonds , Entertainment Finance , Investments • November 18, 2010

wizard-of-investing

What is it about Harry Potter that makes preteen girls and grown men alike squeal with delight when a new book or movie is released? Maybe it’s the adventurous plots or just a really aggressive marketing plan, but I think it has a lot to do with the powerful insight Rowling’s characters share through their dialogue, both in print and onscreen.

Take Dumbledore–he’s meant to be a source of wisdom and guidance for the Hogwarts kids, yet his words often transcend the realm of wizardry and magic to be just as applicable to our reality as well. Apparently, this character has some pretty good investment advice, too.

Dumbledore’s Best Investment Advice

Harry Potter and the Sorcerer’s Stone

“As much money and life as you could want! The two things most human beings would choose above all–the trouble is, humans do have a knack of choosing precisely those things that are worst for them.”

There are gains to be made, but it takes a lot of work to figure out where and how. Beginner investors tend to make poor investment choices and it’s not for a lack of intellect, only experience. That’s why you should be fully prepared to enter the realm of investing before committing your money to anything.

If you’re unable to devote the kind of time it requires to thoroughly research economic trends and current market conditions in order to pin down the best investment options, a financial planner or similar professional has already devoted years to doing just this and can guide you.

Harry Potter and the Prisoner of Azkaban

“The consequences of our actions are so complicated, so diverse, that predicting the future is a very difficult business indeed.”

Anyone who tries to predict what markets will do in the future and base their investment choices on these guesses is not only wasting their time, but most often losing money.You may see small profits here and there, but your earnings won’t match up to investors who follow what decades of research tell them.

The factors that determine how the value of various stocks, bonds, mutual funds, securities and commodities will move are just too vast and complicated to allow for accurate short-term predictions. Market timing is considered a no-no for any serious investor with a sound plan.

Harry Potter and the Goblet of Fire

“Dark and difficult times lie ahead. Soon we must all face the choice between what is right and what is easy.”

It’s easy to maintain a long-term investment strategy when the market is up, but remember when it plummeted not too long ago? Many investors got scared when they saw their portfolios cut in half and bailed before the market had a chance to recover.

Well, it did recover some–those who stayed in were able to make back a lot of the money they lost, but everyone else was out of luck. When it comes to investing, it’s easy to panic, but the right thing to do is listen to the experts and hold on for the long haul.

Harry Potter and the Deathly Hallows, Part 1 comes out tomorrow, so let us know if you pick up on any other investment-related advice spoken during the film.

Get great information like this every week with the GoBankingRates newsletter

We would love to hear your comments and feedback

AdSpeed – GBR – Default – Articles – RR2 Financial Resources Right Rail
AddThis Trending Article Widget
Blank Space