Learn how to invest biblically
Ric Bender discusses the concept of diversification in investing from a biblical perspective. Ric Bender emphasizes that the Bible, particularly Ecclesiastes chapter 11, provides wisdom on long-term investing, wealth creation, and risk management.
Here are the key takeaways:
- Biblical Foundation for Investing: The video references the parable of the talents, highlighting God’s expectation for stewards to generate “yield” from their resources. Investing is presented as a way to honor God and impact the world for His kingdom.
- The “Why” of Diversification: Ric Bender stresses the importance of diversification due to unforeseen “evil” or risks in the world, including economic, political, and historical uncertainties. He mentions events like the 2008 market destruction and the ongoing currency crisis as examples of risks that necessitate diversification.
- How to Diversify Biblically: True diversification, according to the video, goes beyond investing in various ETFs. It involves spreading investments across “non-correlated” assets, such as:
The objective is to mitigate risk so that if one investment fails, others that are not correlated can balance the portfolio.
- Conclusion: The video concludes by reiterating that God’s wisdom encourages long-term, diversified investing to honor Him and mitigate risks, even those unseen.
