by expatbrit 4 Replies latest jw friends
Hello.
If anyone knows of any quotes from Watchtower literature (using the term loosely) that give counsel on investing i.e. making sure that you do not invest in unchristian companies etc, please could you post them or a reference to them?
Much appreciated!
Expatbrit
http://www.watchtower.org/library/g/2000/10/8a/article_01.htm
http://www.watchtower.org/library/w/2001/6/15/article_01.htm
*** w84 7/1 pp. 24-28 Greed Can Be Deadly ***
Greed Can Be Deadly
“THE motive was greed,” charged the assistant district attorney. The crime was murder. A 29-year-old man stood before the judge accused of the execution-style shooting and killing of his wife’s father, mother and 16-year-old brother. For what reason? To inherit an estate worth $200,000!
While the vast majority will not allow greed to impel them to commit murder, greed often becomes the catalyst that turns a good relationship sour. When greed seeps into the Christian congregation, spiritual damage and even death can result by setting brother against brother and causing hatred to heat up to the point of boiling over into spiritual ‘manslaughter.’—1 John 3:15; Mark 7:21, 22.
Who Are Susceptible?
Greed’s potential lurks inside all of us. Because of inherited imperfection, greed is a wild outgrowth of the normal desire for material possessions and financial security. (Romans 5:12) It springs forth from an excessive or insatiable desire for possessions, fame or power. It can change a considerate person into a ruthless one. Lately, there is one group that has become more susceptible to the shrewd schemes of greedy operators than most others.
People who are religiously inclined are a main target for swindlers. [I couldn't resist highlighting that sentence.] Why? Usually religious people are more trusting and have more of a wanting-to-be-helpful attitude than others. The eyes of the greedy see this as a sign of weakness—gullibility. U.S. attorney Brent Ward, after investigating fraud in Utah that bilked members of one religious group out of $200 million over a period of two years or so, said: “It seems anytime religion enters into a sales pitch, the promoter is able to bridge the gap from unbelievability to believability.” Those victims were fooled into believing that they could make a quick, easy fortune by doing nothing more than investing their own money. Could the motive have been greed that lured some of them into parting with their hard-earned savings?
An Illusion of Safety
How does greed grow—with its cravings for possessions and wealth? How is it that greed can turn the cautious investor into a gullible one? Ecclesiastes 4:4 points to one answer: “I have also learned why people work so hard to succeed; it is because they envy the things their neighbors have. But it is useless. It is like chasing the wind.”—Today’s English Version.
Unscrupulous business promoters often link their business scheme to an aura of wealth—a luxury car, expensive jewels—and use this as a lure to wrap around greed’s hook to catch the unwary. They want you to become envious of their luxuries. So much so that you will believe that by investing in their business you, too, can own a similar plethora of goods and become wealthy without doing much work. In reality, if you do not lose your investment outright, you will end up working longer hours and harder than ever.
Greed creates the illusion that all that people need is money. True, money can be a protection, but it cannot buy happiness or eternal life. It has limits. “For wisdom is for a protection the same as money is for a protection; but the advantage of knowledge is that wisdom itself preserves alive its owners,” states Ecclesiastes 7:12. Action based on the accurate knowledge of Jehovah God and his Son Jesus Christ is what brings real happiness and leads to everlasting life. Therefore, is it not wise to invest in becoming spiritually rich with God, rather than striving for material wealth with man?—Matthew 5:3; Luke 12:20, 21; John 17:3.
However, money itself is not the issue. The real issue is, How do we get the money, and what do we do with it?—Matthew 6:24.
Christian Contacts
A number of sales organizations encourage their representatives to view everyone they know as a prospective customer—including those in their church. Fellow believers become a natural market for whatever is being sold. This is one trick the selling business uses to expand its base of customers. But would a true Christian want to take commercial advantage of his Christian contacts, his brothers and sisters in the faith?—1 Corinthians 10:23, 24, 31-33.
The apostle Paul, after spending three years with the congregation in Ephesus, could state with a clear conscience: “I have coveted no man’s silver or gold or apparel.” (Acts 20:33) Not only did Paul refuse to lust after another person’s material possessions but he was also unwilling to use the truth for personal financial gain.
Some businesses use the divine name in their advertisements and direct their sales campaign to Jehovah’s Witnesses by means of the Kingdom Hall. Can it be said that this practice is in harmony with the principle of Acts 20:33? Hardly! Kingdom Halls or Bible study groups or assemblies of Jehovah’s Witnesses are not the places to introduce personal commercial matters or to do job recruiting, but, rather, they act as centers for spiritual discussion and association before, during and after the meeting. (Hebrews 10:23-25) Therefore, to smudge the spiritual beauty of Christian association with commercialism would show an utter lack of appreciation for spiritual values.
There is also the matter of taking advantage of Christian contacts outside the Kingdom Hall. Does this mean that fellow Christians cannot do business with one another or start up a business together? No, that is a personal decision. However, some Christians initiate business ventures that encourage greed and try to entice fellow believers to become their partners or sales representatives. Many of these businesses fail, costing the duped investors large sums of money.
True, in some cases the investors themselves were motivated by a strong desire to make quick money. But should not each organizer feel a sense of responsibility for the financial outcome to others in business ventures? Should he not thoroughly consider in advance what may be the result, spiritually, to others if the business venture should fail? If so, does not an increase in responsibility usually bring with it an increase in accountability?
There are a few Christian overseers that have promoted questionable ventures harmful to their fellow believers. Such should be aware that this may affect their privileges in the congregation. No one can be told how to handle his secular affairs. Yet, no one should exploit his Christian contacts for business purposes either.—2 Corinthians 6:3, 4; 7:2; Titus 1:7.
Beware of Get-Rich-Quick Schemes
A Christian who quickly sees the danger of getting involved in a worldly get-rich-quick scheme could drop his guard when the scheme involves fellow believers and be hoodwinked by this reasoning: ‘Of course, this business deal is different; it comes from fellow Christians, and I could use the extra money. I’m sure they would not get involved in some risky business and endanger the investment of their fellow believers. Besides, this will give me more time for spiritual matters. I might even be able to pioneer.’ Be careful! “The heart is more treacherous than anything else and is desperate,” warns the Bible. That includes your heart too. Greed may blind us, so that we follow a risky course or take advantage of our brothers to accomplish selfish ends. We should sincerely examine our motives in the light of God’s Word.—Jeremiah 17:9, 10.
It is not wise to enter a business venture blindly with anyone, even with fellow believers. It is wise first to ‘count the cost.’ (Luke 14:28, 29) Know the facts—your limits, the limits of the business.
Consider this illustration: A safe driver knows the limits of his car and the road. He knows that other cars may be handled more easily on curves and in swerving to avoid obstacles at a greater speed than his. He also knows that the faster a car travels the less tolerance there is for error and the greater the risk of a crash. Therefore, he refuses to try to match what other drivers and their cars can do—he knows the limits. Likewise, now is not the time to see how far and how fast we can go in this system. The fact that one Christian may be successful in business does not necessarily mean that another one will be. Greed, like alcohol in a driver, may cause a Christian to overestimate his limits, leading to a spiritual crack-up and injury or, worse, spiritual death.—Galatians 5:26.
Before getting involved in a business venture ask yourself: Is it really necessary? Does the sales pitch appeal to greed, or will it satisfy a real need? Can I afford to lose all the money I am investing? If the business fails, will I deprive myself or my family of needed financial security? How risky is my investment? If I will be the owner of or partner in the business, how much business experience and acumen do I have? Am I familiar with tax laws? Have I researched the credentials and principles of the owners and the business? Is there a growing market for the business? Will I be so indebted to the business that I will find it difficult to quit? If I become seriously ill, how will the business deal with it?
And, more importantly, ask: Will I really have more time to devote to spiritual matters, or will it be less? How many of those already in the business have actually increased their time spent on spiritual matters?
The answers to those questions are directly tied to your spirituality. Bad business practices, ideas or plans do not turn into good ones just because fellow Christians are involved, any more than a house built with good materials is safe during a tempest if its foundation is built on sand. The danger for the Christian lies not only in financial loss but in spiritual collapse as well.—Matthew 7:24-27.
Daniel, a father with six children, found that his $200,000-a-year business demanded too many hours away from his family and was eroding his spirituality. So what did he do? “I decided to get out of the business,” he said. That was 12 years ago and, he adds, “I have never regretted it; I have received many blessings from Jehovah, and our entire family is unitedly serving our Grand Creator, Jehovah.”
An Insidious Trend
The insidious trend toward materialism disturbs many, prompting concerned Christians to comment:
“The world is full of schemes to make big, fast money—full or part time, especially in the field of direct multilevel selling. Many of my fellow Christians have been enticed—only to lose precious time and money. I, myself, have been a three-time loser. I’ve grieved that I got some of my fellow believers involved. They have lost money that they couldn’t afford to lose.”
“Some prominent Christians here are promoting various investment and business schemes among the brothers. In just the past week I have been approached three times, either to buy a product from a brother, to invest funds in an investment club formed by and for brothers, or to go into business with a brother.”
“It seems Christians have become so excited by this opportunity [pyramid-type insurance scheme] that anyone, the newly interested, believers having spiritual difficulty, just anyone, is viewed as a prospective recruit for their business organization.”
“At times those promoting ‘quick-and-easy riches’ have made a mockery of spiritual values, such as when those promoting their scheme imply, or state flatly, that their newfound affluence or success was a direct result of God’s blessing on their venture.”
A godly view of riches will alert the Christian to the snares of greed and will help him to resist succumbing to the worldly trend of materialism. Therefore, how should riches be viewed so as not to arouse greed?
[Blurb on page 25]
When greed seeps into the congregation, spiritual damage may result
[Blurb on page 25]
Greed creates the illusion that all that people need is money
[Blurb on page 26]
The Kingdom Hall is not the place for job recruiting or for promoting commercial matters
[Blurb on page 26]
‘I’ve grieved that I got fellow believers involved. They lost money they couldn’t afford to lose’
[Picture on page 24]
Unscrupulous business promoters want you to become envious of their luxuries
[Picture on page 27]
A godly view of riches alerts Christians to the snares of greed
This comes from an article on purchasing pianos. Some interesting Principles™ in there, though.
*** g79 8/8 p. 23 Caring for That Marvelous Instrument—Your Piano ***
Before You Invest—Investigate!
A wise buyer, when purchasing expensive items, will often arrange to retain a professional consultant. If you contemplate buying a piano, you should be able to hire a consulting technician at about the cost of a tuning fee. Investigation may save you the grief of buying a piano that looks excellent and even sounds excellent but has a hidden flaw that could require a very expensive repair or rebuilding job, or could render your piano unusable. Your consultant can estimate the cost of whatever work should be done—repairs that would, of course, affect the purchase price.
So, ask yourself: Can I afford the initial investment? Can I afford the maintenance? Before you invest, investigate. Then, if you own a piano, take good care of it.
*** g00 10/8 pp. 25-27 Is It Wise to Invest in the Stock Market? ***
Is It Wise to Invest in the Stock Market?
“Record numbers are now playing the market.”—Newsweek, July 5, 1999.
THE floor of a traditional stock exchange seems to be a chaotic marketplace. Mysterious (to an outsider) hand signals are employed, coded messages on electronic tickers appear and change at a frantic pace, and floor brokers compete to be heard above the flurry of activity.
Today, however, many people once bewildered by the stock market are investing in stocks. Why? For one thing, the Internet has enabled investors to access in moments financial news, investment advice, and stockbrokers. Paul Farrell, editor in chief of Wall Street News, writes: “For [individual investors], cyberspace investing is the new frontier, the new gold rush, the freedom to be yourself, with the opportunity to become financially independent while working at home.”
On the other hand, some financial advisers are alarmed by the eagerness of many to invest in a market that they may know very little about. One investment dealer with over 38 years of experience in the securities industry told Awake!: “More people are buying into the stock market as speculators, not investors. Some may call it investing, but they don’t know anything about the company [whose stock] they are buying and selling.”
What factors should you weigh before investing your money? Since a measure of risk is involved with the trading of stocks, is it gambling? First, let us consider how the stock market operates.
Buying a ‘Piece of the Pie’
Companies need capital, or invested money, to operate successfully. When a company prospers and requires a large amount of capital, its management may choose to offer shares of its stock to the public. One guide to the stock market illustrates it this way: “Stocks are pieces of the corporate pie. When you buy stocks, or shares, you own a slice of the company.”
At a street market, buyers and sellers meet and conduct business. Similarly, the stock exchange is a marketplace for those who buy and sell stocks. Before the development of the exchange, stocks were traded through brokers at coffeehouses and on the roadside. Trading under a buttonwood tree at 68 Wall Street led to the formation of the New York Stock Exchange. Now there are stock exchanges in many countries. On any given business day, at any hour, there is a stock market open somewhere in the world.
To trade stocks, an investor usually opens an account with a broker and places an order. Today orders to buy or sell stock can be placed over the telephone, through the Internet, or in person. The broker then needs to execute the order on behalf of the investor. If the stock is traded on a traditional trading floor, the brokerage office directs one of its floor brokers to buy or sell stock for the investor. In recent years some exchanges have adopted a completely electronic trading system, where trades can be made seconds after the order is placed with a broker. Trades are then recorded on stock quotations—current prices and trading details displayed on an electronic ticker.
The price at which stocks are bought or sold is usually determined by competitive bidding, as at an auction. Business news, company earnings, and the future prospects of an enterprise can all influence the price of a stock. Investors hope to buy their stock at a low price and sell their shares for a profit after they increase in value. A portion of the company’s profits may also be divided among the shareholders as dividends. Some people buy stocks as a long-term investment; others trade stocks regularly, hoping to profit from stock prices that rise dramatically in a short time.
While the trading of stocks has traditionally been done over the telephone, on-line trading (buying and selling stocks over the Internet) has become increasingly popular. The Financial Post reports that the number of on-line trades in the United States “increased from about 100,000 per day in 1996 to nearly 500,000 by the end of June [1999] with nearly 16% of all trades in the United States done electronically.” In Sweden some 20 percent of all stock trading in 1999 was done over the Internet.
Invest Wisely
The apparent ease of trading stocks on-line and gaining access to information previously reserved for brokers and professional traders has prompted many individual investors to take up day trading, the buying and selling of stocks full-time. Some have given up lucrative careers to become day traders. Why? “The allure is obvious,” explains Money magazine. “No bosses, complete control over how and when you trade and the potential—or so it seems—to make a lot of money.” One 35-year-old man who quit his $200,000-a-year job to trade stocks at home is quoted as saying: “How else can you have no inventory and no employees, pay no rent, tap-tap-tap on a keyboard and make a living?”
Experts warn that trading stocks is not as easy as it may seem to a new investor. One psychiatrist who specializes in the stresses of trading observes: “Trading seems deceptively easy, but I like to say that it’s the hardest way to make an easy dollar.” The endless stream of financial news and advice has not come without side effects. Paul Farrell, quoted earlier, notes: “The relentless thrust of information racing at lightning speed at the individual players—both the individual investor and the institutional trader—is having a major psychological impact: rattled nerves, frustrations, stress.”
Overconfidence can also be a snare. Financial columnist Jane Bryant Quinn warns of dangerous attitudes among traders: “You think that if you’re at the helm—or at the mouse—bad things can’t happen. You’ll always be able to intervene in time.” She adds: “Because we can access information used by pros, we start to think that we’re pros, too.” Despite the widely publicized stories of investors who have become rich overnight on the stock market, the trading of stocks carries inherent risks. Some investors have been very successful. Others have suffered significant losses.
Investment advisers urge potential investors to consider a company’s past record and future prospects, the demand for its products, competition from other businesses, and several other factors before selecting a firm’s stock. This information is often available through stockbrokers and other financial institutions. Many investors consult with financial planners before purchasing stock. By considering the background of a company, an investor can also ensure that his money will not be used to support an unethical enterprise.—See Awake!, February 8, 1962, pages 21-3.
A Corporate Lottery?
In view of the risks associated with the stock market, is buying stock the same as gambling? A measure of risk is involved in nearly all financial investments. Some people buy real estate, not knowing if the value of a property will increase or decrease over time. Others deposit their money in a bank, trusting that their savings will be secure. While the stock market is more complicated, simply put, one who invests in stocks buys the shares of a company in the hope that the enterprise will prosper and the stocks will increase in value.
Such an investment differs from gambling because the stockholder has purchased part of a company. These shares may be sold to another person or saved in the hope of future growth. This cannot be said of a person who bets money at a casino or on a game of chance. Against the odds, the gambler seeks to predict an uncertain outcome and win the loser or losers’ stakes.
How much risk should an investor accept? That is up to each individual to decide. Of course, it is not prudent to risk more money on an investment than one is willing to lose.
A Balanced Attitude Toward Money
In a desire to provide for their immediate and future needs, some have decided to invest in the stock market. One’s motive for making such financial decisions is important. Jane Bryant Quinn, quoted earlier, states: “Envying the undeserving rich can bring out our worst instincts as investors.” Those words seem to echo the advice given in a letter written to a young man almost 2,000 years ago: “Those who are determined to be rich fall into temptation and a snare and many senseless and hurtful desires, which plunge men into destruction and ruin. For the love of money is a root of all sorts of injurious things, and by reaching out for this love some have been led astray from the faith and have stabbed themselves all over with many pains.”—1 Timothy 6:9, 10.
How a person chooses to invest his money is a personal decision. Guided by a sound mind and contentment with the necessities of life, an investor does well to keep financial concerns in their place, not neglecting his or her family responsibilities and spiritual needs.
[Footnotes]
The term “Wall Street” now frequently refers to the financial markets in general.
Not all advice is sound. Investors should be aware that a financial planner or a stockbroker may be merely pitching his own services or manipulating his customer for profit.
