"...and I will dwell in the House of the LORD forever!"

Monday, March 29, 2010

Bites from Buffet


Warren Buffet is arguably the world’s greatest stock investor. But did you know that he is also a bit of a philosopher? He illustrates his investment ideas into simple, yet meaningful sound bites. For example:

Rule #1: “Never Lose Money.”
Rule #2: “Never Forget Rule #1


Now, I appreciate his “humor”, but his rules don’t really govern his personal life. Even though he is a trained “specialist” of the Stock Market, Buffet lost $23 billion in the 2008 financial crisis. Possibly he should go back to the drawing board and reevaluate his top two rules!

But, there is one more rule that he has devised which is “genius.”

It’s far better to buy a Wonderful Company at a Fair Price, than a Fair Company at a Wonderful Price.”

This rule from the “world’s greatest stock investor” points to one basic principle of business: “To make money, you must spend money.” Sure, you might be purchasing a company at an unbelievably low price, but what potential for profit are you purchasing? Stocks carry the same criteria! The price you pay for a stock isn’t necessarily the same value that you are getting, and successful investors know the difference!

How does this business chatter filter into the Christian arena? Well, to become a disciple of Jesus Christ, the “buy-in” price isn’t cheap. Jesus gives HIS price. He said, “…deny yourself, take up your cross daily, and follow me.” (Luke 9:23) That price carries a significant cost! But remember, that cost will never compare to the value you will receive! After all, Jesus promises his customers that if they pay HIS price, they will receive a “…crown of life.” (Revelation 2:10)