Created back in 1926 as a means to entertain his son, Christopher Robin, AA Milne’s “silly old bear” is honoured each 18 January on Winnie-the-Pooh Day.
Beloved by readers old and young for nearly a century, Milne infused his stories, and the characters of One Hundred Acre Wood, with moments of profound wisdom and insight.
And while these were largely focused on themes of love, friendship, and belonging, you might be surprised to learn that there are some financial planning and investment lessons hidden in their pages too.
Keep reading for a closer look at seven quotes from the works of AA Milne, and what they can teach you about your portfolio and your long-term financial plans.
1. “The nicest thing about the rain is that it always stops. Eventually.”
One of the most important lessons to learn when investing over the long term is that volatility is to be expected. In fact, it’s built into your plan – it’s the reason your investment term is so long in the first place – so there’s really no need to panic. This is something Winnie-the-Pooh knows only too well.
Ignore the rainy days of market drops and, instead, try to focus on your ultimate goal. Market dips can occur for countless reasons, from global political events to isolated news reports or even single social media posts. When it rains, remember that the downpour will stop eventually. The most important thing is that your money is still invested when markets recover and the sun begins to shine.
2. “When life throws you a rainy day, play in the puddles.”
Sticking to our weather theme a moment longer, AA Milne also had this to say: “When life throws you a rainy day, play in the puddles.”
Now, we would never advocate trying to time the market – it’s incredibly hard, if not impossible to do so successfully, especially over the long term – but the above words of wisdom could help you to frame market downturns differently.
Dips could represent an opportunity to buy shares at lower prices or to speak to us about ways to further diversify your portfolio. Remember we’re always on hand to answer your investment questions, whether the market is rising or falling, and however long away your goal might be, so be sure to get in touch.
3. “People say nothing is impossible, but I do nothing every day.”
The simplest investment advice we can offer might be to do nothing at all.
Keeping a daily watch on the value of your investments is a recipe for disaster, especially when markets fall. Drops can lead to panic and emotional decision-making, which is rarely the right choice where your money is concerned.
News headlines can be concerning but try to avoid following the latest trends and don’t chase “top-performing” stocks.
Back in August 2024, Schroders looked at the dangers of an over-reliance on so-called “top performers” in the US stock market. It found that in 12 of the past 18 years, not a single US stock which made it into the annual top 10 in a given year kept that top 10 place the following year. The report found that even maintaining a top-100 place is difficult – just 15 companies each year, on average, managed two consecutive years in the top 100.
Rather than chasing top performers or trying to time the market, consider taking a leaf out of Pooh’s book and doing absolutely nothing. It’s undoubtedly easier and could see better results.
4. “The things that make me different are the things that make me, me.”
Your long-term financial plan is aligned with your long-term goals and is unique to you. This is why chasing trends is so dangerous. An investment decision that is right for one investor (or set of investors) won’t automatically be the best option for you.
Piglet sings the above line in a 1999 straight-to-DVD Winnie-the-Pooh sign-a-long story, but it captures the essence of AA Milne’s characters and storytelling. It’s also a crucial lesson in staying focused on your plans.
5. “The sun still shines, even when it’s hiding.”
As we have already seen, a long investment term will see its share of rainy and sunny days. But the weather won’t be the same everywhere.
Just because one asset type, sector or geographical region isn’t performing well, doesn’t mean it won’t pick up in future. Rain in one area of your portfolio could be offset by the sun shining elsewhere.
Your diversified portfolio spreads your risk and gives you the best chance of having your money invested in sunny climes.
6. “It is more fun to talk with someone who doesn’t use long, difficult words but rather short, easy words like ‘What about lunch?’”
Investing can be a complicated business. It’s why we’re here to offer advice and guidance and why you trust us with your money.
We’re on hand to keep an eye on market movements so you don’t have to, providing you with regular reviews and recommendations to ensure your plans remain on track.
We’ll never try to confuse you with jargon or over-complicate matters. It’s important to us that you feel fully informed and educated so that you can make the right choices for you. That means speaking in plain language and keeping things simple.
7. “Rivers know this: there is no hurry. We shall get there someday.”
Long-term investing isn’t a race. Together, we can find the best path to your goals – one that matches your individual circumstances now, your risk profile, and your plans for the future.
That leaves you free to relax, safe in the knowledge that like Pooh’s river, you’ll get to where you need to be in your own time.
Get in touch
HA&W (with the help of Winnie and friends!) can help you reach your long-term investment goals. So, if you have any questions, be sure to contact us now to find out how our Chartered financial planners can help.
Please note
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance. Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.
