Where no wise guidance is, the people fall, but in the multitude of counselors there is safety. (Proverbs 11:14; Amp.)
It is our great pleasure to announce that WFTB’s recent post Staff Meeting With God: You Can Learn A Lot From A Snake is a part of the 202nd Carnival of Personal Finance – Lao Tzu Edition. Follow the link to get some great information on a variety of subjects. This chapter of the carnival is hosted by Fire Finance. Fire (Feel the Financial Independence & Retire Early) has done a great job with this carnival by offering a lot of good posts grouped by several topical areas.
We are honored to be included with such good company!
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]]>Part 3 of the “Parable of the Talents” Series
16He who had received the five talents went at once and traded with them, and he gained five talents more. 17And likewise he who had received the two talents–he also gained two talents more. (Matthew 25: 16-17, Amp.)
Here we see the response of two of those servants in which the Master entrusted his property. They immediately 
went and “traded.” The word “traded” come from the Greek word ergazomai. In this context, these servants “put this money to work.” Perhaps they invested it in the first century equivalent of the stock market. We can’t say for sure. Regardless, they invested these funds in a vehicle that resulted in a 100% return on the Master’s money. Not bad.
These servants already had their basic needs met by virtue of their relationship with the Master. They had food, clothing, and shelter as members of His household. This money apparently was not for these basic needs. Although the money belongs to the Master, He is giving His servants a great deal of freedom regarding its disposition.
What are we doing with our money once our basic needs are met? What avenues of increase are available to us? Are we taking advantage of them?
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]]>Part 2 of the “Parable of the Talents” Series
To one he gave five talents, to another two, to another one–to each in proportion to his own personal ability. Then he departed and left the country. [Emphasis mine] (Matthew 25:15 Amp.)
Get Smart, Get Wealthier
As we read this opening portion of the parable of the talents, it is noteworthy to observe that talents are distributed according to personal ability. Jesus is stating through this principle that in order to get more money, you should sharpen your skills.
This parable is about money. The term “talent” in this context refers to a monetary measure that corresponded to a certain weight of gold or silver. Over a period of time, this term was transformed into the use that we know it today (see definition) as it relates to creative ability.
This verse is also about personal development. As believers, we should always be in a state of self-improvement. In a sense, it is not totally self-improvement as we are working in partnership with our Lord Jesus Christ. He is the “master” in this parable and he should be the master in every aspect of our lives. Jesus is telling us that that are practical and tangible benefits to improving our abilities. This is part of our transformation from “Glory to Glory.”
So, allow this verse to motivate you as take that college course, read that book, practice that ability or engage in some other activity that will improve your abilities. There is a reward awaiting you. In fact, there are (at least) two rewards ahead: 1) The increase in talents (double-meaning here) and 2) the satisfaction that comes with that increase in expertise — and who can put a price tag on that!
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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 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.“ The plans of the diligent lead to profit as surely as haste leads to poverty.” Proverbs 21:5 (NIV)
“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 LynchBe 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?
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