Have you also gasped seeing the gold coins Harry’s parents left him? Of course, we’ve always wanted to be that rich and attend Hogwarts as the Boy who Lived.
But did you ever think of all those Harry Potter binge sessions as finance lessons? Looks like we as Muggles can sure learn a financial lesson or two from the series itself. So what can the multi-billion dollar Wizarding World teach us?
Accio reading glasses! 🧐
There was no class on Investing 101 or The Defence Against the Dark Side of Finance, but here’s what we’ve gathered.
Planning for unforeseen circumstances can help us win bigger financial battles in the long run.
In the first book/movie, we are introduced to the Gringotts bank, the safest bank in the Wizarding World. Harry is surprised to see the fortune his parents left him, which was because of planning a will and not leaving money to chance. Even Dumbledore makes a will to leave behind the legendary magical possessions for the trio.
“Evanesco” to my debts 🥲
There’s no crystal ball for trading
We often see experts who are better than others at predicting what the market will do in the future. There is often a focus on trying to find the secret spell.
There is no crystal ball which can help you predict the outcomes of investing right. It’s planning which helps in trading and investing, we should be prepared to deal with falls and ups. That’s why being prepared for the worst always helps. For this, Harry did not spend his money, yet took a calculated approach to keep enough to sustain himself.
Lessons from the characters themselves
- Lord Voldemort and his portfolio: The most powerful and dark wizard diversified his portfolio into 7 different Horcruxes (ahem, asset classes anyone?). While the intentions behind the Horcrux were pure evil- the mastery behind diversifying is a great takeaway as an investor.
- Lily and James, saving for the future: Life is unpredictable, and Harry’s parents were prepared for that enabling him to purchase all that candy on his first Hogwarts train ride.
- Hermione and her light reading: Hermione has always been there to save the boys with her knowledge and sharp eye. Researching the market before investing will always keep you from trouble.
- Gambling like Ludo: Knowing the basics before investing blindly is crucial. Ludo Bagman, an employee of Ministry Magic had a problem with gambling.
- Raids of the Death Eaters affect the markets: When Voldemort comes to power, the Death Eaters make life a living hell for wizards and muggles alike. As an investor, keeping an eye out for company performance and management will help you stay ahead of the crisis.
Calculated risks only: The angel investment of the Weasley’s shop
The Weasley’s Wizard Wheezes was a recognisable startup venture in the Wizarding World. In just a few short years, they took their business from ideation and product development in their bedroom to finally opening their flagship store in Diagon Alley, that too in the middle of a You-Know-Who-induced economic downturn no less.
This was made possible by the 1000 Galleon given by Harry to the Weasley twins.
Don’t be like Harry Potter.
Understand the business plan, like Harry had been familiar with some products of the Weasley’s Wizard Wheezes, Puking Pastilles, for example. Harry had faith and was familiar with the vision of the Weasley twins, but the company’s strategic plans were overlooked due to friendship.
Lessons for Muggles
There are many hidden lessons in the Wizarding World; Harry can be seen as a risk-taker, bold and gutsy investor, like how he invested in the Weasley twins’ business venture. However, always remember to make calculated decisions before jumping into investments.
Markets this week
This week, we’ve been…
Reading Woman on Fire by Lisa Barr, a book about stolen art during the Nazi reign and a chase of claiming the piece as one’s own. History, vicious chase, and art come together in this thriller.
Watching The Crown since Season 5 is now streaming, and we’re excited to see Princess Diana riling things up at the Royal paradise!