Is investing in stocks better than gambling?

Audio transcription

We now have a follow-up query for episode #1269. On this episode, we talked about fantasy sports activities playing — particularly associated to DraftKings and FanDuel — which prompted this query from a listener named Preston.

“Hi there Pastor John! I listened to your episode the place you mentioned your views on sports activities playing being sinful. You mentioned that the system itself is dangerous and said that $50 contributed to a “well-invested inventory fund” may yield $230,000 in future worth over a few years, and that might be a wiser use of the $50. My query is, if you happen to make investments $50 in a inventory fund, aren't you signing up for considerably unknown threat in the identical approach you might be with educated (not random) sports activities playing? This begs the query, how can we as Christians decide what’s an inexpensive stage of threat in investing our greenback?

“Secondly, how can we belief that the funding trade just isn’t additionally a system of evil, like sports activities playing? How can we belief that our greenback returned from an funding was not earned in a crooked or sinful approach, like a greenback from a sports activities playing establishment?

Playing vs. investing

Let's take Preston's questions one after the other. First, he asks, “Should you make investments $50 every week in a inventory fund as a substitute, aren't you subscribing to a little bit of unknown threat in the identical approach that an informed (not random) sports activities gamble is?

“A Christian's monetary life mustn’t concentrate on how one can decrease threat and maximize revenue within the inventory market.”

Now if Preston requested if there was any threat concerned in investing cash within the inventory market or in any safety, I might merely say sure. However discover what he was truly asking. He requested, “Should you make investments $50 every week in a inventory fund as a substitute, aren't you signing up for considerably unknown threat in the identical approach you might be with educated (not random) sports activities playing? And the reply to that’s no.

There may be all the time threat it doesn’t matter what you do together with your cash. You bury it and it’d rot. You’ll be able to disguise it in a home, however the home may burn down. You’ll be able to put it in a financial institution and the banks can go bankrupt and the federal government that insures it may go bankrupt. Put that in shares with totally different hedging philosophies and so they can all go bust.

Sure, relating to cash, there is no such thing as a escaping threat on this world – or for that matter, doing something on this world. However once we ask whether or not playing includes threat in the identical approach as investing, the reply is not any. For a number of causes.

1. Investing means letting one other individual use your cash for companies you imagine contribute to the frequent good, whereas playing means supporting a system that’s counterproductive to the frequent good and particularly harmful to the poor.

2. Investing is normally not an all-or-nothing threat. You’ll be able to lose a part of what you make investments and withdraw, whereas in playing you normally lose the whole lot or acquire one thing.

3. Investing permits you to select your stage of threat with better readability and likelihood than most playing.

There are no less than three variations.

A particular comeback

Let me return and say that after I was answering the query he quoted from – about sinfully losing $20-$50 every week on fantasy sports activities playing – my allusion to saving cash for twenty years and $230,000 to purchase a home with while you've fifty was merely to indicate that even the world thinks it's silly to not. I didn't imply to say that's one of the best factor you are able to do together with your cash.

“There may be one form of funding that’s dependable. Its dividends are completely sure and better than any dividends within the universe.”

Let me make an actual level about threat. Though you might have to lose your life within the course of, there’s one sort of funding that’s dependable. Its dividends are completely sure and better than any dividends within the universe.

Jesus put it this manner: “Don’t retailer up treasures on earth” – I don't care the place: financial institution, grime, mattress or inventory market – the place moth and rust destroy and the place thieves break in and steal. Inventory markets are bearish. “However lay up for yourselves treasures in heaven, the place neither moth nor rust destroys, and the place thieves don’t break in and steal. For the place your treasure is, there your coronary heart might be additionally” (Matthew 6:19–21).

Right here is the way in which Jesus places it in Luke 12:33: “Promote your possessions and provides to these in want. Safe for your self purses that don’t develop previous, treasure within the heavens that doesn’t fail, the place no thief approaches and no moth destroys.” Promote your possessions and donate, be beneficiant.

Or so says Paul:

As for the wealthy on this current age, command them to not be exalted, nor to set their hopes on the uncertainty of riches, however on God, who richly supplies us with the whole lot we are able to sit up for. They’re to do good, to be wealthy in good deeds, to be beneficiant and able to share, thus laying up treasures as an excellent basis for the long run, in order that they will lay maintain of what’s actual life. (1 Timothy 6:17-19)

I might argue that the principle focus in a Christian's monetary life shouldn’t be how one can decrease threat and maximize revenue within the inventory market, however quite how one can maximize everlasting revenue by maximizing generosity for functions that glorify God and save sinners from struggling. particularly from everlasting struggling.

The place our accountability ends

However Preston raised one other query: How can we belief that the funding trade just isn’t additionally a system of evil in the identical approach that sports activities playing is?

“By no means spend money on what you understand is evil.”

So far as I do know you possibly can't. You can’t know that. However that goes for each greenback you spend out there. There could be a racket in any grocery retailer while you purchase groceries. Each gasoline station you refill at might be ripping off clients with machines which can be misconfigured. Any clothes chain can exploit international employees the place you get your shirt. Any firm you spend money on can assist causes you're sorry for.

I might say the rule of thumb is to do the whole lot you possibly can earlier than you make investments. By no means spend money on what you understand is dangerous. However any concept that none of our spending and none of our investments might be misused by others is totally naive. You aren’t liable for something somebody may do to misuse your cash, any greater than a salt producer is liable for hypertension.