The best investment you ever make has three outstanding qualities.
They are beautifully wrapped in this ancient verse.
Send out your bread upon the waters, for after many days you will get it back. Divide your merchandise among seven or eight investments, for you do not know what calamity may happen on earth. Ecclesiastes 11:1–2
“Send”, “waters” and “divide” are clues for investment success.
1. “Send” every investment
The Hebrew word for “send” in this ancient verse literally means to “be dispatched.” Send off to a destination with purpose.
Whether it’s time or money, the best investments are not careless.
They are sent with purpose.
Sending out your bread successfully calls for . . .
- intent
- humility to let go
- intuition about returns
In short, be smart with risk and then take it.
“Having deep conviction in what you own is the best bulwark against impatience upending investment returns.” Jake Rosser
Mix these skills with investment and success will return.
2. Patience with “waters”
A life of sending bread upon the waters is a life of patience.
I appreciate this image after driving a boat.
The sea humbles anyone to learn the wind and the waters.
Things work out by not panicking.
Let the wind bring things around.
Long views are ignored in today’s media.
What sounds, feels and looks good now is priority.
Not the wise investor. “Many days” is a successful habit of waiting.
“Most people are too fretful, they worry too much. Success means being very patient, but aggressive when it’s time.” Charlie Munger
3. “Divide” against adversity
Adversity and affliction are part of life.
Who knows when . . .
- a partner betrays
- a storm strikes
- a test is positive
Make sure no one or two tragedies can clean you out.
“Seven or eight” is a Hebrew formula meaning “plenty and more than plenty.”
Seven means “plenty” and eight means “go beyond that.”
In all my years of counseling folks on financial matters, I recommended diversification with prudence.
In other words, have different rabbit trails leading to the burrow.
- Send out every investment with purpose.
- Be patient with stormy waters.
- Diversify paths toward your goals.
- Remember the simplicity path to wealth.
What investment rule serves you well?
It is easy to read this article and think about our financial investments. However, I want to think about the investments of my time and energy in these terms, as well. I am more likely to be careless with them than with my money.
Yes! Absolutely Steve! Thanks for your comment!