The book of Ecclesiastes in the Bible is a fascinating scripture. Traditionally, King Solomon wrote this, historically, one of the richest and wisest men to have ever lived. According to one estimate, his net worth peaked at $2 Trillion * and God Himself blessed him with wisdom**. So, if he wrote a book inspired by God, we probably should read it!
Regarding investing, this is what he said: Send your grain across the seas, and in time, profits will flow back to you. But divide your investments among many places, for you do not know what risks might lie ahead. When clouds are heavy, the rains come down. Whether a tree falls north or south, it stays where it falls. Farmers who wait for perfect weather never plant. If they watch every cloud, they never harvest. Just as you cannot understand the path of the wind or the mystery of a tiny baby growing in its mother’s womb, so you cannot understand the activity of God, who does all things. Plant your seed in the morning and keep busy all afternoon, for you don’t know if profit will come from one activity or another—or maybe both. Light is sweet; how pleasant to see a new day dawning. Ecc. 11:1-7 NLT
So, what can we learn from this:
Invest freely, diversifying to mitigate risk. Risky conditions and the unexpected will happen, so be prepared. Ideal conditions rarely, if ever happen; you must research, test, and apply within the situation that you find yourself. Life happens and most events are out of your control, some are even unfathomable. Therefore, you must work hard, invest diligently, and be disciplined in your actions with money. Life is a good gift from God, remembering that He has blessed you tremendously, enjoy these blessings.
At Sound, we apply both Biblical screens and our years of investing knowledge to our portfolios. We are guided by a ‘Rules-Based’ approach that we researched and developed to be tested before implementation, giving us a defined decision-making process, aiding our investors to reach their goals.
For more information on our process feel free to read all that you want!