While Warren Buffett has done pretty well for himself playing around in the stock market, King Solomon remains the best investor the world has ever known. It seems to us that would make him a pretty good candidate for dispensing investment advice. The Queen of Sheba noted that everything the man touched tended to prosper. The bad news is that the good king is no longer with us in person. We can’t email or call him. He doesn’t send out a newsletter or have a website. But wait – there IS one way we can figure out how to pick his brain on the subject of investing.
There’s a book out there you might have heard of called the Bible. In case you’ve forgotten, there’s plenty of Solomonic money advice nestled in those pages. Here are King Solomon’s three investment principles.
1. Diversify: Hmm, seems like we might have heard this one a time or two from modern day financial planners and advisers. It turns out this has been sound advice for a LONG time. In Ecclesiastes 11:2 Solomon wrote:
“Divide your portion to seven or eight, for you do not know what misfortune may occur on earth.”
These sentiments can be expressed a hundred different ways but the bottom line is always the same; don’t risk all you have on a single asset. Diversification spans all ages, income levels, time frames, and personality. If it was good enough to put in the Bible, it’s good enough for us.
2. Always Be Ethical: You can find “investments” that yield a high rate of return with little risk, but the problem is that many prey on the fear and weakness of others. Solomon warns us to only do what is pleasing to the Lord. Jason Hartman, founder of Solomon Success, points out that get rich quick promises and Ponzi schemes aren’t pleasing to many people and especially not God. This one is easy to conceptualize, harder to pull off.
3. Seek Good Counsel: King Solomon’s not the only guy to suggest this. Jason Hartman’s Second Commandment of Successful Investing says, “Thou shalt have a professional investment counselor.” Keep in mind this doesn’t mean stock broker who creates commissions by churning your account. Solomon was talking about a trusted mentor with wisdom and knowledge of financial markets. While one good financial counselor is good, two or more are even better. You can never have enough good advice.
There you have it: investment advice from a guy who knew a thing or two about wealth. (Top image: Flickr | BrentDPayne)
The Solomon Success Team