Our second peek at ancient texts that discuss economic life is from the book of Ecclesiastes. Ecclesiastes is believed to have been written by King Solomon around the third century B.C.E. The word Ecclesiastes means Teacher, and refers to Solomon. You may recall that he was considered one of the wisest men who ever lived. (Remember the story of him deciding to tear the baby in half?)
It seems the media is always focused on what investments to buy NOW, preferably today, for a quick short term gain. I thought it might be interesting to view what scripture has to say about investments and economic life in general.
Professional investors know something that most people find impossible to believe: that the threat of scary ups and downs in the markets is by far the best friend of the long-term investor. Why? Because over the long term, stocks have provided returns far higher than bonds or cash.
When I told my partner Marshall that I was planning on writing an article on the wisdom of continuing to hold bonds in our client’s portfolios he suggested an excellent approach. Namely, should we plan for investing last year, or should we invest for this year, 2014, or should we plan to invest for the future.