Whose story of investing are you following? The world’s story or God’s story?

Knowing which story you are following is important since it changes the “why” and the “how” of your investment strategy. We’re going to start off by looking at what the world thinks and says about investing.

But, before we jump into the world’s story, let’s identify what we mean by “investing” in the first place.

Simple facts about investing:

• The primary reason companies exist is to make a profit by meeting a need through a product or service.
• The primary reason companies issue stock is to raise money to grow their business.
• Buying a stock makes you a part owner and entitles you to a share of the company profits.
• A mutual fund or exchange traded fund (ETF) is a basket of stocks from different companies. The fund is managed by an investment company. When you invest in a mutual fund or ETF your profits are generated from the companies held by the fund.
• People invest in order to grow their wealth by sharing in the success and profits of the company.

The World’s Story of Investing

Whether you are conscious of it or not, the world is telling you a story about investing. Consider the quotes below from some well-known investors and businesspeople. (Whatever you think of these folks personally, I think you’d agree they have had financial success.)

“A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful.” – Warren Buffett

“Rule No. 1 is never lose money. Rule No. 2 is never forget Rule No. 1.” – Warren Buffett

“It’s not whether you’re right or wrong that’s important, but how much money you make when you’re right and how much you lose when you’re wrong.”  – George Soros

“Successful investing is about managing risk, not avoiding it.”  – Ben Bernanke

“Given a 10% chance of a 100 times payoff, you should take that bet every time.”  – Jeff Bezos

“Do you know the only thing that gives me pleasure? It’s to see my dividends coming in.”  – John D. Rockefeller

“Successful investing is about owning businesses and reaping the huge rewards provided by the dividends and earnings growth of our nation’s – and, for that matter, the world’s – corporations.” – John Bogle

What do you notice?

The general theme that runs through them all is maximizing profit and minimizing risk.

In the world’s story for investing, it really doesn’t matter how returns are generated, only that returns are generated.

And what is the end goal of the world’s story of investing? In the world’s story of investing, success means making enough money so that you don’t need to work and can live life doing whatever you want, whenever you want.

Take a look at the 1962 advertisement below for Sun City, the original retirement community.

Is there anything wrong with enjoying leisure, hobbies, and community in your Golden Years? Of course not. God also gives His resources for us to enjoy! But should that be our only priority?

It’s easy to get caught up in the world’s story of investing and there are nuggets of truth within the story. Christian investors should want to make a profit and should consider risk. But if the “why” of investing is just to live a life of unending pleasure and the “how” is irrelevant, then the world’s story of investing missed the mark.

Is there a better story?

Yes, there is! It’s God’s story for investing!