Best Biblical Investment Advice Ever

While I managed portfolios and retirement accounts, I read voraciously.  The following advice is the Best Biblical Investment Advice I had ever read or heard. 

Wealthy people would realize a greater return if they invested their wealth in what they knew… their business or profession in which they excelled and became wealthy.    

I cannot remember the author, but I do remember dismissing it as absurd at the time.  I thought is was ridiculous advice.  Of course the market is the best place to put money.  That was then. 

This is now.  The fact is, men and women labor and toil a lifetime to become respected experts in their chosen profession or industry.  They hustle to become successful wealthy professionals.  Well known in their local communities.  And then they find their way to the stock market with the illusion their wealth can be multiplied.  Many times over.  They do so only because they expect to get something for nothing.  To succeed with little effort while lacking knowledge and experience.  Where else is this expectation ingrained?  I have yet to find that place.   

The "Something For Nothing Dream" doesn’t exist.  It’s a mirage.  Those professional men and women, fathers and mothers, will soon be separated from their money.  A lifetime of work and reward... gone.  Evaporated.  They don’t see, hidden in the tall grass, the professional investors, traders, finance men, managers, and private client bankers that have labored and toiled a lifetime too.  They too are experts in their chosen profession.  They too have hustled to become successful and wealthy.  They will gladly pocket the businessman's money.  That’s what they do.  It’s unethical for them not to. 

My experience (just one of many) while employed at a bulge-bracket broker:      

I inherited a small investment account of $30,000.  The client was female.  Mid twenties.  In six months, I never saw her and only spoke to her once (via phone) despite my efforts to contact her.   One day, a man comes into the branch asking for me.  His name did not ring any bells.  I greet him.  He follows me to my small cramped office.  I ask what I can do for him.  He proceeds to tell me he is the owner of a regional commercial construction company.  I immediately recognize the name.  He is very successful and well respected for his considerable knowledge and experience (he has my full attention).  I learn he is the father of the small account I inherited (I quietly salivate).  He said he liked how his daughter’s account was managed and didn’t like how his account was managed at another broker.  I learn he wants to transfer $400,000 to me (my heart skips with glee). He didn’t leave until the new account had been set up.   About a week later, thirteen stock positions arrived via ACATS.  That was February 2007.   

Four months and a few investment tweaks later, (37% of account was in BAC) his account was up 6% despite the two day March shellacking.  He stops by, unannounced, walks into my office and drops a cashier’s check for $1,300,000 on my desk and says, “I am selling my company.  This is the balance of my individual 401k.  I don’t want to take on much risk, so ten to twelve percent would be fine.  Thanks Stack.”   

He leaves before I could explain that was simply impossible.  I called him that evening to manage his expectations, to explain 10%-12% percent returns beat the historical market average.  Those returns are not risk free.  He explained how he could get market returns via a passive ETF or mutual fund and that he pays me to do better than he could do.  I attempted to explain the risk again.  He didn’t like what I said, so he moved his money to a guy down the hall.  The following week the $1.7 million was put to work, fully invested in 31 stocks.  That was June 2007.

The following spring, the sale of the company was final.  The next check he dropped off was gargantuan, albeit I heard only half.  The other half was trusted with a financial advisor at a national bank.  The guy down the hall put it to work.  Five months later, he transferred the account, down 44%, to the bank and rumored to have invested in 3% CDs.

He lost millions in five months.  Financial matchstick men will do that.  They find it unethical not to seize the opportunity.  It's their game.  He would have done much better if he invested in what he knew, his professional and social communities.  Maybe if I had recognized the Best Biblical Investment Advice I ever read, his choices may have been different.

Wealthy people would realize a greater return if they invested their wealth in what they knew… their business or profession in which they excelled and became wealthy.    

The Pure in Heart

"Blessed are the pure in heart, for they shall see God."  Matthew 5:8

My youngest daughter happens to have Down Syndrome. She is fourteen and has baby teeth that still need to ‘get going’. Today, a stubborn tooth finally gave up and let go.  It skedaddled. She was excited. We went to the bathroom. She rinsed and spit repeatedly, in the way only a Down Syndrome kid can. A paper towel was folded and rolled and placed in the empty space. She bit down.

While she lay on the couch, she smiled and giggled when she checked the paper towel. I said she might receive $2 for her tooth. No response. Nothing. I asked if she would like $5 and she shook her head ‘no’. I asked if she would like a “Cerci” and she nodded ‘yes’.

What's a Cerci? A Cerci never fails to brighten your day because it shows someone thought of you. It's a surprise, an unexpected treat of no more than a few dollars. My wife introduced me to my first Cerci in college; a Frisco burger from Hardees. Candy, fountain drinks, and Icees always works. Ice cream is a favorite. Toys work. Socks our oldest daughter really, really wanted elicited a big broad smile a few years back.

Our daughter prefers the Cerci because money is meaningless in her world. It has no value. She knows money can get her stuff but Barbie’s, little people, and her Tangled CD have more meaning. Food is important. Spending time with her family is special for her. Board games, dinner at the table, going to the park, and especially movies "with the whole family". She makes sure everyone is sitting and ready before she pushes play.

Necessities of life do not concern her. Material possessions do not consume her. She trusts they will always be provided. Milk. OJ. Peanut Butter. Saturday morning pancakes. Her after-school snack. Clothes. Shoes. A coat for winter. Hot water for her bath. She doesn’t worry about what isn’t her responsibility. She trusts because she cannot navigate this world without trusting others who place her interest above their own interest.  

She does worry though. She is scared of thunder storms. She is afraid of the dark. Loud places and loud people make her nervous. She fears the unknown and gets anxious and gags, She has vomited. "The Unknowns" exist in mass quantity for her. They slither and invade her world disguised as bowling alleys, doctor offices, restaurants and the first day of school. She doesn’t allow that worry and fear to settle down for a long winter's nap. She adapts. She is a trooper. We are privileged to watch her strength and courage every day that others only read about or imagine. 

When she gets angry, she says so. Only the truth according to her life. When she decides to be stubborn, there is no malice involved or ill will... she is sad/mad she can't do what she wants. She accepts the resolution and soon forgets about it. No Hatfield-McCoy grudge. No whining. She moves on to find something else to do, something she likes. She doesn’t... no, she never dwells on the negative and is innately a half-full-kind-of-girl.

She has tender feelings that get hurt. At times, she is devastated by what other do and say. When that happens, she sobs deep heavy sobs. Sobs where you sit silently and hug her and let her smear snot on your shirt. Sobs that leave a gooey sticky mess behind. She explains so-and-so "hurt my feelings" and when she is ready, she forgives wholly and fully.

When she is punished, she is genuinely sorry for what she has done or said. She apologizes with the kindness and gentleness that only a teen with Down Syndrome can do. Oh, she gives plenty of hugs and kisses with her apologies. She may hold and pat your hand. Your head and face will get rubbed. She will say, “I’m sorry” until she feels everything back to normal and you know she is sorry for what happened. She wants to make things right.

She gets upset when her brother or sister get into trouble. She does not like when they are sad. She wants them to be happy. She will do her very best to make them feel better. She is good at it because she loves them and she shows her love. But, she says “I Love You” only if we say it first and ask her to say it back. She never voluntarily says it. She prefers to tell us how "sweet" we are. We know, without question, she loves us.

The blessing God has bestowed upon our family has changed us forever. We are privileged to watch and know what God wants from us; to just be content. She navigates an unique world each day she gets out of bed. The obstacles she encounters during the day do not steal her joy. She rarely complains. I can’t remember the last time she had a no good bad horrible day. 

The secret to joy is to be like her. She loves and forgives and trusts. She is content. Satisfied with today and lets tomorrow take care of itself. Her heart is not corrupt with pride and ego. When asked "Where does Jesus live?"... she will point to her heart. 

I wish I could trust God they way she trusts her mother and I, the way she trusts her teachers, her brother and sister, doctors, and so on. The list is long. I try and fail and try again. I don’t think I will ever be as good as she is. 

Her weakness strengthens us.

Higher Christian Education: Part 1

On August 15, my daughter begins her junior year of high school.  We have discussed colleges she prefers with possible road trips to visit a few.  In addition to the traditional public and private institutions, Christian colleges were being considered.  

As we looked at different schools and what they offered, we found Christian schools were more expensive, not a smidgen but "that must be a joke" more expensive, relatively speaking of course.  I was shocked at some, well, actually most Christian colleges offer less, much less value than non-Christian schools.  Why the higher cost?  Is it justified?  

I chose The Ohio State University as a benchmark to compare the value of all public, private, and Christian colleges.  This process, my process, is subjective at best and flawed at worst.  Why use The Ohio State University (tOSU) as the benchmark?  

1. We are Ohio residents and every state has a state university system.  
2. I am an alumnus.  
3. We are confident she will be accepted.  
4. I have attended three schools in my academic life:  A junior college of 800 students; A NC public university of 4000 students; The Ohio State University with a 56,000+ enrollment.  Of those three, my Buckeye education and experience was far more valuable. 

Christian schools have guaranteed scholarships based on the student's academic performance. This is the rule. Standard practice on a massive scale. The scholarship value was determined by the student's academic performance.  The better the student, the more money the school offered (in the form of a scholarship).  I understand they want to compete for quality students and if this is their best strategy, they will fail to consistently attract quality students.  Here's why:  

1. Students with a 3.7+ GPA, graduate in top 10%, and have impressive test scores aren't likely to enroll in a small Christian school, in an out-of-way-location.  
2. The don't have the ability to offer diverse opportunities to excel.  
3. The cost, even after the maximum scholarship(s) amount, remains higher.  

How do such schools justified its high price tag especially when a high percentage of students borrow money to attend?    

1. Is the extra expense due their unique ability to foster the growth and maturity of a student's faith?  
2. Do they provide a uniquely Christian experience not found on other college campuses?   
3. Are those guaranteed scholarships unique to Christian campuses?  

Those scholarships, based on their high school performance, are offered (albeit not guaranteed) at just about every state university system.  (Even without a scholarship to Ohio State, the cost of a Buckeye education is still below the tuition of most Christian colleges.) 

Does one need to attend a Christian school to find a Christian environment?  Aren't Christian communities found on college campuses everywhere with active vibrant Christian support structures?  Small groups.  Bible study.  Sunday worship.  Religion classes. 

Henry Beecher said, "If a man cannot be a Christian in the place he is, then he cannot be a Christian anywhere."  Ohio State, as well as other universities, provide an environment where students can develop and strengthen their faith.  Daniel continued with his faith as did Shadrach, Meshach, and Abedego despite being taken from their culture, given new names, and commanded to worship false Gods.  The student's faith, or the lack thereof, is dependent on the student and not the college, youth group, church, or environment.        

In addition to the Christian environment, Christian colleges often cite the advantages of smaller class size and personal attention from professors.  The truth is small classes and caring engaged professors are moot points, non factors because:

1. Success in the classroom is like faith... always dependent on the student.
2. Professors have office hours at larger universities, despite claims to the contrary.
3. As a Buckeye undergrad, I never had a problem getting time with a professor. 

Textbooks are textbooks.  Professors are professors.  Calculus is Calculus.  Whether at MIT or a community college.  Why pay more, sometimes laughably more for a degree?

What do Harvard and Stanford provide that other universities do not?  What makes Harvard or Stanford worth dropping $250,000 when quality alternatives exist?  The value is found in large active alumni networks and quality internship opportunities.  They give graduates a boost, a head start no other school offers.  Alumni provide contacts and references.  Quality internships build vital experience. The better the internship, the better the references, the more attractive the graduate.  

I'm aware smaller schools provide internships, but who is more likely to provide three students with internships at the New York Federal Reserve Bank versus an internship at the local branch of a regional bank?  An academic consultant for the NY Fed prior to joining the Ohio State University as the Dean of Accounting.

“Olivet does not seek to be the cheapest option available in higher education, but rather to offer a high-quality experience for our students with a commitment to excellence.”  Olivet Nazarene University. 

I had, yes had, to unplug my laptop, flip it upside down, and wait for it to dry after I choked, drooled, and spit lime Kool-Aid all over the place as I read that opening sales pitch from Olivet Nazarene University, a Christian school.  They offer their education for $36,000 each and every year.  

But, wait... they have those guaranteed scholarships to reduce the financial burden.  How much financial help can they provide?  I don't know.  Why?  I simply, quite honestly, just between us... became exhausted with their online form asking for name, address, phone, academic data, test scores, social security, FBI fingerprint cards (in duplicate), retina scan, ten years of residence history, and one stool sample for the privilege to be contacted... yes called... to discuss the possible value of a scholarship.  All I wanted to know was how much the scholarship might reduce the expense. Now, I will never know. My loss?   

Wheaton College is the highest rated Christian University (59 on Forbes) where one steadfast Christian who believes God is good all the time, Jesus will return, and the flood was global, can attend if they pony up ~$40,000 each and every year.  Now, I am sure Wheaton is a nice school... ranking 59th is an achievement of which they should be proud, but is it twice a nice, twice as valuable as a Buckeye education?  

1. A Buckeye education $20,000/year.  $80,000 total.
2. Wheaton College $40,000/year.  $160,000 total.  
3. Olivet Nazarene $36,000/year.  $144,000 total.  

$60,000 and $80,000... that's a lot of extra debt, unnecessary debt.  What does a graduate expect to receive for the extra expense?   

1. Higher earning potential that otherwise wasn't possible with a degree from another university?
2. Possess an advantage other universities can't provide to their graduates to compete and obtain coveted jobs?
3. Placed in a better position to be successful?  

Olivet and Wheaton are confident the answer is "yes, yes, yes" despite the mountain of debt that places the graduate at a significant disadvantage, tucked neatly behind eight ball, and under the thumb of $60,000 - $80,000 frivolous student debt. Beginning life or a career with that amount of debt is not a prescription for success. What's the monthly debt service (payment) for a student loan that size?  
  
The natural question to ask next, would God approve spending $144,000+ at Olivet Nazarene University when an better option... a less expensive option exists?  I can think of ten alternatives that are infinitely better than starting life with an Olivet diploma and at minimum a $100,000 student loan balance. A Buckeye degree versus an Olivet degree? No contest which will serve the graduate better.No contest which is more valuable in the world.

Dare I say steering young Christians to attend Christian schools is negligent at best and ungodly at worst. They deserve better.  And the Church wonders why young people leave the faith; why they abandon the church?  Maybe it's because we, as their Christian leaders, elders, pastors, teachers, parents and mentors don't appear to be any different than those who don't believe.  

I'll step off my soapbox for now.  Have a good and godly day.

   

Jesus said...

“It was Jesus Christ who said He himself would rise again from the dead [on] the third day after He was crucified.  He said something only a fool would dare say if He expected a longer duration of devotion from His disciples... unless He was sure He was going to rise.  No founder of any world religion known to men ever dared say a thing like that!”  Wilbur Smith