Fool's Eye View

[ April 20, 2000 ]

Maundy Money

By Christopher Spink (TMF Eagle)

Great Titchfield Street, London -- Investors have had little to do today. Few companies have released results this morning. In general people are winding down before the Easter break. This gives the impression that investing should only be done when things are busy and when a lot is going on. However, Fools could learn a lot from taking a break.

Maundy Thursday is generally a day when things get turned upside down. Today the Queen handed out Maundy money to 74 pensioners at Lincoln Cathedral. The number of recipients depends on the monarch's age. This tradition dates back to the 13th Century. In those days the Sovereign used to hand out food and clothing to poor pensioners instead of money.

More importantly up until the reign of James II (1685-1688) most monarchs also washed the feet of the impecunious recipients. This humbling gesture recalls the actions of Jesus at the Last Supper when he washed his disciples' feet. Thus on one day of the year is recalled the humility of Christ by the Sovereign washing his or her subjects' feet, or nowadays by handing out charitable gifts.

The name Maundy derives from the Latin word for commandment, "mandatum", because Jesus commanded his disciples at the Last Supper "to love one another" according to John's Gospel, regardless of status or outward appearances. What can such a day teach us about how to conduct our lives, when talking about finance though?

Firstly, humility is a vital virtue when it comes to thinking about personal financial matters. Never believe you know everything. One can always keep learning about one's investments and decisions. If you make a mistake don't be too proud to admit it and learn from your errors.

Secondly, putting yourself in someone else's position can be most instructive. It is very easy to be supremely confident when looking at only one side of the story. Think about the negative aspects of your chosen investment. What could go wrong? Are there any risks I have overlooked?

Thirdly, going back to the basics and re-educating yourself in the fundamentals of investment is a very worthwhile exercise every now and again. It can be easy to get caught up in the day-to-day investing whirl of company announcements and general market noise.

Fourthly and finally, there are more things to life than concentrating exclusively on your finances. Take a break and relax and you will come back refreshed. Happy Easter from all at the Fool!

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