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5 Stock-Picking Tips From the Bible

CoolHappyGuy — Sun, 31 Aug 2008 07:00:38 +0000

I am intrigued by super-investors such as Warren Buffet and Peter Lynch. These individuals have enjoyed ginormous investment rates of return over years. I have wondered if their investment principles have Biblical parallels.

Please understand that I am not making any spiritual assessments regarding these gentlemen. While I have studied their investment methods, I have never met them nor had dealings with them. What I am asserting is that very often long-term success strategies very often can be tied to biblical principles even if the practitioners are unaware of or deny such comparisons.

Bible wisdom very often has very practical and tangible benefits in addition to the invaluable, incalculable spiritual blessings that we normally associate with scriptural truths.

So, having said that, here is my list of Biblical Guidelines for successful stock-picking:

Invest in what you know

“Desire without knowledge is not good, and to be overhasty is to sin and miss the mark.” Proverbs 19:2 (AMP.)

Don’t fall prey to some “hot tip.” Your experience along with some research can lead you to investment opportunities. “Invest in what you know” was a phrase that Peter Lynch made famous. Mr. Buffet has passed on opportunities that he did not understand.

If you stay half-alert, you can pick the spectacular performers right from your place of business or out of the neighborhood shopping mall, and long before Wall Street discovers them.” Peter Lynch.

Invest in quality companies

“But others fell on good ground and yielded a crop: some a hundredfold, some sixty, some thirty.” Matthew 13:8 (NKJ)

“You will know them by their fruits. Do men gather grapes from thornbushes or figs from thistles?” Matthew 7:16 (NKJ)

Superior, well-managed companies tend to do well year after year. These are the ideal “ground” to plant your seed (i.e. money). Such companies typically do not resort to dishonesty or ethical gray areas. The results of such efforts (i.e. profits) are evident. As in farming, good ground can produce abundant fruit season after season.

“If a business does well, the stock eventually follows.” Warren Buffet.

Examine a Company’s Management

“ The plans of the diligent lead to profit as surely as haste leads to poverty.” Proverbs 21:5 (NIV)

The value of good management can not be overestimated. Fashions may change with the seasons but a savvy management team can interpret tumultuous times as opportunities to be seized. The Bible recognizes that good character traits such as honesty, diligence, and hard work are better indicators of business success – or any other kind of success – than, say, the Dow Jones Industrial Average, the business regulatory environment, or similar other temporal environmental factors.

“You only have to do a very few things right in your life as long as you don’t do too many things wrong.” Warren Buffet.

Invest for the Long Term

“Dishonest money dwindles away, but he who gathers money little by little makes it grow.” Proverbs 13:11 (NIV)

Oftentimes, investors may get discouraged or stressed during times of underwhelming market performance. During such times, the superstar investors typically remain calmly confident in their investment strategies. They know that quality portfolios will endure till more prosperous times.

“Our favorite holding period is forever.” Warren Buffet

“Just because the price goes up doesn’t mean you’re right. Just because it goes

down doesn’t mean you’re wrong. Stock prices often move in opposite directions from the fundamentals but long term the direction and sustainability of profits will prevail.” Peter Lynch

Be Patient

“The plans of the diligent lead surely to advantage, But everyone who is hasty comes surely to poverty.” Proverbs 21:5 (NASB)

Warren Buffet on investing: “There are no called strikes.” Mr. Buffet occasionally is criticized for not buying anything during long stretches of time. However, he knows that the rewards of buying that one great company outweigh those of buying a few mediocre ones.

Have I missed anything? What Biblical principles do you know of that will assist in evaluating an investment opportunity?

8 Biblical Reasons to Invest

CoolHappyGuy — Sun, 27 Jul 2008 21:08:17 +0000

There is a train of thought that the Bible is not relevant as far as money matters are concerned. However, the Bible has a lot to say about money. Furthermore, scripture encourages wise investment of our finances. Following are eight specific scriptural reasons for profitably putting our money to work for us.

To Prepare for Lean Times6 Go to the ant, you sluggard!
Consider her ways and be wise,
7 Which, having no captain,
Overseer or ruler,
8 Provides her supplies in the summer,
And gathers her food in the harvest. (Proverbs 6:6-8)
It’s Considered Lazy Not to!
See Proverbs 6:6 above. The Bible does not have anything good to say about laziness! (Example: Proverbs 6:9-11) It is definitely a poor lifestyle!
To position yourself to receive God’s bounty
20 “So he who had received five talents came and brought five other talents, saying, ‘Lord, you delivered to me five talents; look, I have gained five more talents besides them.’ 21 His lord said to him, ‘Well done, good and faithful servant; you were faithful over a few things, I will make you ruler over many things. Enter into the joy of your lord.’ (Matthew 25:20-21)God not only encourages investing but provides the funds to invest! He has a reward system in which His servants keep the proceeds, are promoted, and share in His best.
It Pleases God
“His master replied, ‘Well done, good and faithful servant! You have been faithful with a few things; I will put you in charge of many things. Come and share your master’s happiness!’ (Matthew 25:21, NIV) God truly delights in the prosperity of His servants. (Psalm 35:27)
It’s a Great testimony
1 If you fully obey the LORD your God and carefully follow all his commands I give you today, the LORD your God will set you high above all the nations on earth. (Deuteronomy 28:1, NIV) The verses immediately following describe these Divine manifestations of prosperity.
A Chance to Do Good
Therefore, to one who knows the right thing to do and does not do it, to him it is sin. (James 4:17, NASB)For one of the companies in which I am a stockholder, there was a proxy vote concerning a matter in which I thought was morally wrong. Through my vote, I was able to take a stand for righteousness.

Additionally, if Christians increase their investments in businesses or, conversely, withdraw from other market segments; the Body of Christ can influence the marketplace (Proverbs 1:20).
Develop Trust in God
For where your treasure is, there your heart will be also. (Matthew 6:21, NASB) If you make the Lord in charge of your finances, He TRULY is Lord. Your checkbook and your calendar will reflect your beliefs moreso than the words of your mouth. Do you really trust the Lord in your finances?
You Can’t NOT Invest
Be not deceived; God is not mocked: for whatsoever a man soweth, that shall he also reap.(Galatians 6:7, KJV)Note that the above verse does not say “IF you sow … ” but “whatsoever …” you sow. The question is: in what (or, rather, whose) ground do you sow? Money is definitely a “whatsoever” in this context.

So, have I omitted anything? If so, please let us know with your comments.

Related: The basics of investing

The Bible is the (First and) Last Word

CoolHappyGuy — Tue, 17 Jun 2008 12:33:27 +0000

2 Timothy 3:16-17 (King James Version)

16All scripture is given by inspiration of God, and is profitable for doctrine, for reproof, for correction, for instruction in righteousness: 17That the man of God may be perfect, thoroughly furnished unto all good works.

Welcome to Wealth From The Bible!

The purpose of Wealth From the Bible.com is to provide a forum by which we examine what the Bible has to say about money and stewardship. The primary tenet of Wealth From the Bible.com is that the Word of God is taken as absolute truth. We will entertain no debate or discussion about the Divine origin of the Word of God. It’s it and that’s that! This is our basic guiding principle and doctrinal statement. We want to make that perfectly clear upfront.

However, that is NOT to say that we will avoid debates or shy away from controversies! Even among the best God-fearing Christians differences in interpretation occur. We will simply acknowledge that the (perceived) problem is definitely not with God’s Word. If that disagrees with you than go back to Google or wherever you came from.

Well, glad that’s settled. So then, what are we about?

When I came back to the Lord in the late 1980s, I was bankrupt financially and spiritually. During that time I had a revelation in which I realized that God’s Word is Truth and is relevant to any situation we as humans encounter as we walk though this brief life. I devoured scriptures as popcorn – especially those relating to finances. I was in a financial mess and was foolish enough to believe that the Lord could deliver me.

So, I started this website so that others could avoid the mistakes that got me into trouble in the first place. Furthermore, the Bible can show us the true path to riches. Additionally (perhaps selfishly), I want to learn from those of you out there that have struck the Father lode in their mining of God’s Truth. I also want to start a community in which we can edify one another, reach out to a lost and dying world that struggles with financial issues, and add to the body of knowledge that will help us use money – and not vice versa! – as God originally intended way back when.

Won’t you join me as we explore the treasury of God’s Word?