I do not know if you are aware of it, but according to ancient manuscripts, God gave the Jewish nation an “investment strategy” on how to invest their money, that is still used today and has stood the test of time.
Many people still successfully use this strategy to minimize risk and to general wealth, while ensuring sufficient liquidity during the tough times.
Markets go through cycles and can be extremely volatile at times. There are peaks and troughs, ups and downs. At the best of times, it can be nerve-racking to invest, and when you add in the impact of pandemics like Covid, natural disasters and political unrest in many parts of the world, investing can be viewed as a daunting task.
You can consider using this Ancient Investment Strategy not only to protect your wealth, but also to build your wealth over time.
The Ancient Investment Strategy
The Talmud is the code of Jewish law that was recorded by Rabbi’s many years ago. In this book of Rabbinic law it includes a philosophy on how to manage ones money effectively.
To this day many successful people make use of this wealth building strategy that has good protection built in.
I did some research and found that Jewish Rabbis recorded an ancient investment strategy in the Talmud, dating back to around 200 B.C. which says…
“Let every man divide his money into three parts and invest …
- a third in land, (property)
- a third in business, (equities and growth investments) and
- a third let him keep by him in reserve. (cash and bonds)”
This is a highly effective cautious balanced investment strategy that ensures good diversification.
If you have a third of your investment portfolio set aside in a diversified basket of cash and bonds, this will ensure that you have accessible funds set aside for contingencies and short-term needs.
If you have a third of your investment portfolio set aside in a diversified basket of growth investments, this will ensure that you can generate good growth over time. Your growth investments may be volatile over the short term but should generate explosive growth over the long term.
If you have a third of your investment portfolio diversified in property, you will not only have a home to live in, but also an investment in land and a physical property.
King Solomon, known as the wisest man in the world in his generation gave us the following advice, “Invest in seven ventures, yes, in eight; you do not know what disaster may come upon the land. (Ecclesiastes 11:2)
In other words, diversify. Don’t keep all your eggs in one basket. Spread your investment across regions, companies, and assets.
A Cautious Investment Portfolio
The ancient investment strategy that God gave his people can be likened to a Cautious Managed investment strategy.
The average Cautious Managed Fund consists of a diversified spread of assets with around 30% investment globally and around 70% in local assets with a three-way spread between…
- Stocks – Up to around 30 to 40% in equities and commodities
- Property – Up to around 10% in property
- Cash and Bonds – Up to 50% to 60% in fixed interest funds consisting of cash, short-term and long-term bonds
Cautious Stable Funds have a defensive first strategy that helps to insulate the portfolio from extreme volatility, while these funds aim to generate real inflation beating growth over the medium to longer term.
King Solomon said, “The wise are cautious and avoid danger; fools plunge ahead with reckless confidence.” (Proverbs 14:16)
Why not consider building up a diversified cautious balanced wealth portfolio, in line with this Ancient Investment Strategy? This approach to your wealth management can ensure that you have sufficient cash flow available for short term needs and emergencies, while still having the ability to generate growth over time. This strategy should help to limit extreme volatile swings in your investment, while still give you the potential to build real growth over time.
We all have unique goals and objectives, so make sure that you get advice to match your specific needs and goals on how best to construct your wealth portfolio.
If you want to But, set yourself up for a fruitful financial future you need to set up a strategy that can provide protection for short term needs while building up your investment portfolio over time.
Why not consider the Ancient Investment Strategy that has stood the test of time!
“The wise are cautious and avoid danger; fools plunge ahead with reckless confidence.” (Proverbs 14:16)
Above all, invite God to walk your journey with you. He wants to lead and guide you.
“Commit to the Lord whatever you do, and he will establish your plans.” (Proverbs 16:3)