The # 1 Reason Why Warren Buffet is Not the Greatest Investor

Mike Holmes | September 20, 2009 | View Comments Comments

Warren Buffet

Simplw. Because God is.

Don’t get me wrong, Warren’s great but he’s just not the greatest!

Huh?

Did I lose you? Alright…let’s start from the beginning. God is a Businessman, right?

Right…well I guess. No…no guessing…He is.

The Bible portyays Him in many ways…and a Businessman is one of them. The Bible shows Him as a Landowner who creates jobs, leases His land and collects rent, and promotes those who give Him profit and fires those who don’t. God is a Businessman.

But to see Him as a Businessman is also to see Him as an Investor.

Why? Because business and investing are two sides of the same coin. Warren himself said:

“I’m a better businessman because I am an investor and a better investor because I am a businessman. If you have the mentality of both, it aids you in each field.”

And one of the things we know about this Investor is that He always expects a return on His investment.  

God Invests at a Discount
 
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The three terms used to describe price fluctuations are: discount, market value, and premium.  Let me explain the difference:

Premium- the price above market value

Market Value- what people think the investment’s worth

Discount- the price below market value

For example:  A home is at valued $300K market value; if you buy it at $450K you bought it a premium. If you buy it at $150K you bought it a discount. Got it? Good.

God tends to buy things at a discount. Whenever the price of something drops the market (or people) no longer see it as valuable–that’s when The Great Investor comes along. He buys stones that the builders reject. He is  always near to those who’ve been discounted by the market and thrown away by the crowd. He invests in long shots. That’s why Paul told the church at Corinth:

“Take a good look, friends, at who you were when you got called into this life. I don’t see many of ‘the brightest and the best’ among you, not many influential, not many from high-society families. Isn’t it obvious that God deliberately chose men and women that the culture overlooks and exploits and abuses, chose these ‘nobodies’ to expose the hollow pretensions of the ’somebodies’”? [1]

Last point: people run to premiums and run away from discounts. The best way to tell who really loves you is this: when they buy into you what price are you at?

My advice: the people who really love you are the one’s who love you at a discount.

What are your thoughts?

  1. 1 Corinthians 1:26-27 (The Message)
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Filed Under: Ministry
  • Satish Domnic
    The comparison is skewed; The GOD of the Universe cannot be compared to anyone or anything. On the other hand, Mr. Buffet has done very well as a businessman and utilized the earthly talents very well bestowed upon him. Like the rest of us, he would stand before the Lord to give an account of his life on the judgment day!

  • Hoftman
    Hi Michael!

    I don't believe GOD is an investor, he is GOD, just like I'm not an Investment Banker, I'm a son of GOD. Investing is one of the many things He does, just like giving Corporate & Public Finance Advice is only a small part of all what I'm involved in.

    However, I could not agree more with what you wrote in you blog, and that is that "He always expects a return on His investment" and that is the only reason why I do, too.

    About a Value Investing approach when He considers His investments: Absolutely! But I also think He many times practices a Growth Investing approach. He is not a day-trader, He is not even a swing-trader. There you are right again: He is in it "for the long haul" in both cases.

    Prove of that is that he loved me when I was at a Discount, but he sure paid a Premium for my salvation: The Precious Blood of His Only Begotten Son, Jesus Christ.

    How could I not live for Him after that!

    Hoftman
  • Good point!

    Thanks for the insight.
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