Soloman's investing advice

Solomon was the greatest investor to have lived due to the wisdom God gave him.

Ecclesiastes 11:1-6 offers some wise advice on investing:

"Cast your bread upon the waters, for you will find it after many days. Give a portion to seven, or even to eight, for you know not what disaster may befall the land. If clouds are full of rain, they empty themselves on the earth; and if a tree falls to the south or to the north, in the place where the tree falls, there it will lie. Whoever observes the wind will not sow; and whoever looks at the clouds will not reap. As you do not know the way the wind blows or how the bones grow in the womb of a pregnant woman, so you do not know the work of God who makes everything. Sow your seed in the morning, and do not let your hands be idle in the evening, for you do not know which will succeed, whether this or that, or whether both will prove to be good."

This passage encourages us to diversify our investments and to keep investing even when we don't know what the future holds.

Here are some modern investment equivalents to the advice in Ecc 11:

  • Diversify your portfolio. "Give a portion to seven, or even to eight" This means investing in different asset classes, such as stocks, bonds, and real estate. It also means investing in different companies and industries. This way, if one investment performs poorly, you won't lose everything.

  • Invest regularly -"Cast your bread upon the waters". Even if you can only invest a small amount each month, it will add up over time. And the earlier you start investing, the more time your money has to grow.

  • Don't try to time the market-"you know not what disaster may befall the land". It's impossible to know when the stock market will go up or down. So instead of trying to time the market, focus on investing for the long term.

  • Rebalance your portfolio regularly. As your investments grow and change, you'll need to rebalance your portfolio to make sure it still meets your investment goals.

Here are some specific examples of modern investments that are consistent with the advice in Ecclesiastes 11:

  • Index funds. Index funds are a type of mutual fund or ETF that tracks a specific market index, such as the S&P 500 (VOO). This is a good way to invest in a diversified basket of stocks without having to pick individual stocks. Or the FAANG stocks -Apple, Amazon, Facebook, Netflix & Google. All products we use daily while making up 20% of the S&P.

  • Target-date funds. Target-date funds are a type of mutual fund or ETF that automatically adjusts your mix of stocks and bonds as you get closer to retirement. This is a good option for investors who want a hands-off approach to investing.

  • Real estate. Real estate can be a good way to diversify your investment portfolio and generate income. However, it's important to do your research before investing in real estate. REIT's are a good way to own shares of real estate.

It's also important to remember that investing is not without risk. There is always the possibility that you could lose money on your investments. However, by following the advice in Ecclesiastes 11 and investing wisely, you can reduce your risk and increase your chances of success.

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