What is a good investment?

Isaiah 40: 6-8

I, like many of you, want to make good investments, so what does a good investor look like?  It was not that long ago we were told almost daily, a good investor always listens to good advice, and this T.V. advertisement resonated with many, “When E.F. Hutton talks people listen.”  

And maybe more of us should have listened, because E.F. Hutton came up with a sweet scheme, and it would come back to bite them.  It was called check kiting, and in 1980 several Hutton branches began writing checks greater than what they had on hand at one bank, then making a deposit in another bank equal to the amount it wrote at the first bank.  "Chaining" gave Hutton the use of money in both accounts until the checks cleared. In effect, Hutton was giving itself a free loan that also did not carry any interest. Thomas Morley, who was in charge of getting the firm to better manage its cash, wrote a memo to Hutton's president, George Ball, saying that this practice netted one branch an extra $30,000 per month.  Over the years, Hutton shuffled money in this manner between 400 banks (mostly small rural banks), gaining the use of an estimated $250 million a day without paying a penny in interest. Whenever something was amiss, Hutton questioned the bank's procedures.   

Now this is going to back fire on them and on May 2,1985 Hutton agreed to plead guilty to 2,000 counts of mail and wire fraud, as well as pay a $2 million fine plus $750,000 for the cost of the investigation. Hutton also agreed to pay $8 million in restitution—the estimated extra income earned from the fraud. In return, two major concessions. First, no Hutton executives would be prosecuted (even though the government determined that 25 senior officers masterminded the scheme). Second, the Securities and Exchange Commission allowed Hutton to stay in business; offenses of this magnitude usually result in an individual or firm being permanently barred from the securities industry.  (Taken in part from Wikipedia) And who told you crime did not pay?

So much for listening to E.F. Hutton, but does God speak on what one should be investing 

in?  Listen and ponder on these words of Isaiah 40:6-8, “A voice says, “Cry!” And I said, 

“What shall I cry?” All flesh is grass, and all its beauty is like the flower of the field. The 

grass withers, the flower fades when the breath of the LORD blows on it; surely the people 

are grass. The grass withers, the flower fades, but the word of our God will stand forever.”  

 (Isaiah 40:6-8 ESV)   This may be the first time you have read that God the Creator 

compared you to grass and the flowers of the field, but like grass or flowers we are very 

limited in our time on planet earth, our beauty will fade, ask any one my age, face lifts may 

help, but this flesh is heading for the dirt.  But inside of each of us is something unique to 

the human race, it is a soul, it can not be investigated or seen by humans but just as the 

word of our God will stand forever, so will the real you, your mind, will, and emotions, 

your spirit, your soul.

That is why Jesus ask the question recorded in Mark 8:37, “For what can a man give 

in return for his soul?”  Matthew’s gospel gives this account of Jesus words to you and 

me, people who take pride in making wise investments;  “For what will it profit a man if 

he gains the whole world and forfeits his soul? Or what shall a man give in return for 

his soul?” 

As a wise investor you can listen as I have often to the many E.F. Hutton’s of this world, or 

you can look to the Creator for your counsel on wise investments, for God has spoken and 

the only two that are eternal are people and God’s word.

From the Back Porch,

Bob Rice