Across the millennia, King Solomon’s words of wisdom about living a godly life still speak to us, with truths that guide money management to this day. Throughout his book of Proverbs, the King has much to say about what characteristics can help an investor – and anyone — make sound financial decisions. And, interestingly enough, they’re echoed by Jason Hartman’s advice for successful investing as well.
Wisdom is the bedrock of a prosperous life. “If wisdom enter into thy heart, and knowledge please thy soul, counsel shall keep thee ad prudence shall preserve thee,” he says in Proverbs 2:10-11/ For Solomon, wisdom includes a willingness to learn and the ability to recognize wicked and misguided paths. In investing, too, being informed and able to separate the legitimate from the scam can lead to success.
As the previous quote points out, prudence – the ability to make decisions with caution and foresight—goes hand in hand with wisdom, preventing risky decisions and forestalling problems from ill considered or ill-advised investing advice. The prudent investor is wiling to take risks but also considers alternatives and looks forward, in order to spot potential pitfalls.
Willingness to Seek Counsel
As Jason Hartman points out, smart investors also recognize what they don’t know, and take the appropriate steps to get the advice and information they need. For Solomon, too, the wise man “shall understand a parable, and the interpretation, the words of the wise, and their mysterious sayings.” (Proverbs 1:6).
Justice and Equity
“Let not mercy and truth leave thee, “says the King in Proverbs 3:3. “Put them about thy neck, and write them in the tables of thy heart.” And fair dealing is w key to Solomon’s investing principles. AS the ongoing mortgage fraud scandals have created victims of foreclosure abuses and tainted the reputations of major lenders, mercy, truth and justice become particularly relevant.
It’s important to be proactive and take control of investing decisions rather than putting everything in the hands of financial managers “Go to the ant, o sluggard,” says Solomon in Proverbs 6:6. “And consider her ways and learn wisdom, which although she hath no guide, nor master, nor captain, provideth her meat for herself in the summer.” Like the ant who takes the initiative to gather food, the investor needs to make investing decisions based on knowledge and wisdom.
In today’s investing world of scams, fraud and confusing advice, Solomon’s ageless wisdom – represented today by Jason Hartman’s recommendations or smart investing — can help investors steer a path toward success. (Top image: Flickr/davos)
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The Solomon Success Team