 |
|
May 25, 2012
Mark Clayton: Is Hillary's State Dept. hacking Al Qaeda? Not quite
Erika Bolstad: Temple cancels Wasserman Schultz speech
The Kosher Gourmet by Ethel G. Hofman: The former president of the International Association of Culinary Professionals, whose members included the likes of Julia Child, is back with contemporary Shavous cuisine: Ruby Fruit Soup, Sweet Noodle Kugel with Cheese, Key Lime Curd, Calsone Casserole Frittata with Wild Mushrooms, Sun-dried tomatoes and Olives, Baked Tilapia with Pepper Cheese Cream and Brown Sugar Shortbread
May 24, 2012
Jeff Jacoby: The peace process battered Israel's reputation
Michael Muskal: 'Pro-choice' position hits record low, according to poll
Chris Farrell: Are We in a Tech Bubble?
The Kosher Gourmet by Penelope Wall: PHILLY CHEESE STEAKS --- hold the steak!
May 23, 2012
Tony Pugh: More private colleges offering tuition discounts
Mary Beth Franklin: How to Choose the Right Annuity for You
Tina Susman: The wig wasn't enough: Man gets 13 years for posing as his dead mom
The Kosher Gourmet by Emma Christensen:A simple way to do fish right
May 22, 2012
Warren Richey: Can US group challenge overseas surveillance act? Supreme Court to decide
Thomas M. Anderson: Walking Away From a Mortgage
The Kosher Gourmet by Megan Gordon: Enjoy a celebration of the most rich and layered flavors: Black bean, sweet potato and quinoa chili
May 21, 2012
Mark Clayton: Cybersecurity: How US utilities passed up chance to protect their networks
Howard LaFranchi: NATO summit: Who will foot the bill for long-term Afghanistan security?
Chris Farrell : Earn Dividends in Emerging Markets with This WisdomTree ETF
Stephen Whiteside, Ph.D. : Mayo Clinic Medical Edge: Social anxiety disorder --- or just shy?
Guy Jackson : Victim's father regrets death of Lockerbie bomber
The Kosher Gourmet by Mario Batali: Famed chef's veal shoulder farsumagru: A festive meat course for late spring
May 18, 2012
Rabbi Berel Wein: Striving: The People of the Book's Book for (All of) the People
Steven Goldberg: 5 Great Stock Picks and the Exchange-Traded Fund that Owns Them
Mary Pickett, M.D.: Ask the Harvard Experts: Don't be forced into gluten-free lifestyle based merely on a doctor's false-positive test
The Kosher Gourmet by Carolyn Malcoun: DIY healthy lunchbox treats: HOMEMADE FRUIT BARS for kids and brown-bagging adults alike
May 17, 2012
Warren Richey: Teacher fired for being unwed and pregnant can sue religious school, court rules
Josh Mitnick: Netanyahu's 'centrist' coalition is already proving it's anything but
Steven Goldberg: Earn Dividends in Emerging Markets with This WisdomTree ETF
Amina Khan: Research links coffee to lower death rates
The Kosher Gourmet by Faith Duran : Cheesy Potato Breakfast Casserole with Cheddar and Sun-Dried Tomatoes
May 16, 2012
Carmen Terzic, M.D., Ph.D. : Mayo Clinic Medical Edge: A variety of exercises can help improve balance
Melissa Healy: National strategy on Alzheimer's disease aims to halt it by 2025
The Kosher Gourmet by Joyce White : GOODNESS GRACIOUS: GREENS! 4 winning recipes that are no longer just for down-home folks (Includes expert tips & techniques)
May 15, 2012
Kristen Chick: Obama administration resumes arms sales to Bahrain despite serious unresolved human rights issues. Activists feel abandoned
Pat Mertz Esswein: Homes are now affordable again and mortgage rates are low. What you need to know before you buy
Kathy Kristof: Our Practical Investor Fights Inflation with These 6 Investments
Sue Hubbard, M.D.: The Kid's Doctor: Lactose intolerant young child? Check again
The Kosher Gourmet by Kathy Hunt: Spread a Little Excitement with EXOTIC CONDIMENTS (4 RECIPES)
May 14, 2012
Lisa Gerstner: How to Protect Your Identity, Finances If You Lose Your Phone
Harvard Health Letters: Heart disease and dementia
The Kosher Gourmet by Megan Gordon: MANGO COCONUT OAT MORNING MUFFINS are a bright but hearty delight
May 11, 2012
Jessica L. Anderson: Get the Best Deal on a Used Car
Jett Stone: Forget face-lifts and fake knees. Scientists have seen the fountain of youth --- and it's broccoli
The Kosher Gourmet by Chef Mario Batali: The famed chef's vegetable dish that tastes true to the season: FAVAS AND SUGAR SNAP PEAS WITH POTATOES AND TARRAGON
May 10, 2012
Sergei L. Loiko: Putin sends warning to U.S., NATO in Victory Day speech at Red Square
Mary Rourke: How being a 'mentch' got Vidal Sasoon his start and fighting in Israel's War of Independence provided him with confidence and a strong sense of his own identity
Jeff Bertolucci: Get Home Phone Service for Less Than $10 a Month
The Kosher Gourmet by Betty Rosbottom: Gleaming with its golden, crimson, and snowy white hues, this silken smooth and creamy STRAWBERRY ORANGE TRIFLE looks impressive, but is easy to prepare
May 9, 2012
Sharon Palmer, R.D. How you can reduce your risk -- or delay -- chronic diseases associated with aging
|
| |
Jewish World Review
Talmudic Investment Advice
By
Rabbi Dr. Asher Meir
| 
|
|
|
|
http://www.JewishWorldReview.com |
Q. I've heard that the Talmud dictates how to invest money. Does Jewish law really dictate individual investment policy?
A. The Sages of the Talmud gave a great deal of useful practical advice, together with the spiritual motivation, and one issue they discuss is investment. One prominent theme is diversification to cope with risk. A Midrash learns this principle from the conduct of the patriarch Jacob, who when threatened with attack divided his family into two camps:
Rav Chiya Rabba said, the Torah teaches right conduct, that a person shouldn't place all his money in a single position. From whom do we learn? From Jacob, as it is said, "And he divided the people with him, and the flocks and the herds and the camels into two camps, and he said, If Esau falls upon one camp and smites it, the camp will remain will escape". (Genesis 32:8-9) (1)
Even more specific advice is found in the following Talmudic passage:
And Rebbe Yitzchak said: A person should always have his money at hand, as it is written (Deuteronomy 14:?) "And bind the money in your hand". And Rebbe Yitzchak said, A person should always divide his money into three: one third in land, one third in commerce, and one third at hand. (2)
The Maharsha (a well-known commentary on the stories of the Talmud, from the 17th century) explains the financial logic of this division based on principles we are familiar with today: Land is safe because it can never lose all its value, but its return is also low. Commerce has the highest return but also the highest risk. Finally, some money must be left liquid for unexpected exigencies.
However, it is clear from the various commentators that the "three thirds" idea is not a hard and fast rule, but rather an application of the general principle to diversify investments considering long-term safety, long-term return, and immediate needs and opportunities. The rabbis were not in the business of giving investment tips, but rather of placing our monetary affairs in the context of a total religious lifestyle.
Specifically, prudent investment is part of a broader religious ideal of temperance, prudence, and generally adopting a long-term approach to planning our life. Maimonides explains:
It is forbidden for a person to disown or dedicate all his property and thus become a burden on others, nor should h sell a field [a productive asset] and buy a house [for his own benefit only], or sell his house [which is durable] and buy moveable goods. Nor should he engage in commerce with the money from his house [risk his house on business ventures]. . . The general principle is that a person's goal should be to have his property succeed, to supersede that which is temporary with that which is durable, and his intention should not be to have momentary enjoyment or to benefit a little [now] and lose much [later].
As a result of the revelations following the financial crisis, many people have become aware that much of the so-called "investment industry" was not really oriented towards increasing our long-term quality of life, but rather towards the kind of behavior Maimonides condemns: making a quick buck or looking for immediate gratification. The rabbis were not interested in the details of our investment portfolio, but rather in the overall approach to life that is reflected in it.
SOURCES: (1) Midrash, Bereshis Rabba on Genesis 32:8 (2) Babylonian Talmud, Bava Metzia 42a (3) Maimonides' Code, Laws of Right Views, 5:12. The Hagahos Maimonis glosses specifically relates the "three thirds" rule to this statement.
Interested in a private Judaic studies instructor — for free? Let us know by clicking here.
Every weekday JewishWorldReview.com publishes inspiring articles. Sign up for our daily update. It's free. Just click here.
To comment or pose a question, please click here.
ARCHIVES
JWR contributor Rabbi Dr. Asher Meir, formerly of the Council of Economic Advisers in the Reagan
administration, is Research Director of the Business Ethics Center of Jerusalem, Jerusalem College of Technology.
THE JEWISH ETHICIST, NOW IN BOOK FORM
You've enjoyed his columns on JWR for years. Now the Jewish Ethicist has culled his most intriguing — and controversial — offerings in book form.
HARDCOVER
PAPERBACK
Sales help fund JWR.
|
© 2009, The Jewish Ethicist is produced by the JCT Center for Business Ethics
|
