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If you think about that, you'll do things differently. I am Rob West. With those words, Warren Buffett reminded us that character and integrity matter, especially in the world of money.
Now, after more than 60 years of market-shaping moves and famous one-liners, Buffett is calling it a career. Today, Matt Bell joins us to reflect on his legacy and share what timeless lessons every investor can learn from it. And then it's on to your calls at 800-525-7000. This is Faith in Finance, biblical wisdom for your financial journey.
Well, we're joined today by Matt Bell, managing editor at Sound Mind Investing. He recently wrote a thoughtful article reflecting on Warren Buffett's remarkable investing career.
So today, we're taking a closer look at the principles that defined Buffett's approach, many of which, knowingly or not, reflect biblical wisdom about money, patience, and stewardship. Matt, great to have you with us. And to start us off, give us a snapshot of just how successful Buffett has been over the last 60 years. Sure thing, Rob. Consider this.
According to the Wall Street Journal, if you had invested $100 in Buffett's Berkshire Hathaway stock in 1965, it would have been worth a mind-blowing $5.5 million by the end of last year.
Now, just to put that into context, $100 invested in the SP 500 would have grown to just $39,000.
So it's no wonder that when most people are asked who's the greatest investor of all time, The only name that comes to mind is Warren Buffett. Yeah, no doubt about that.
So, how would you characterize what Buffett did differently? Yeah, one thing that was kind of out of the box, if you will, was having Berkshire Hathaway never issue dividends. That really flew in the face of conventional finance industry wisdom in the 1960s. He thought he could generate better returns for investors by reinvesting profits in the company and increasing its share value. And that, of course, worked out pretty well for him.
Now, some people also point to his patience as a key to his success. He would sometimes keep large portions of his portfolio in cash until he could find the right opportunities. And he usually spotted those opportunities and deployed that cash during market declines. That led to one of his most famous quotes: be fearful when others are greedy, and greedy when others are fearful. Yeah, I remember that one.
We certainly wouldn't encourage fear or greed as a mindset, but Buffett was really pointing to something deeper, and that is the value of staying disciplined. When others panic.
So while we can't follow his exact path, Matt, are there takeaways here we can apply to our own investing? Yeah, absolutely, Rob. You know, throughout his long career, Buffett doled out plenty of investing lessons, usually in pithy statements made to the press or in his annual shareholder letters.
So as an example, he said, if you don't find a way to make money while you sleep, you'll work until you die. Buffett made his first stock investment when he was just 11 years old, quickly discovering the benefits of putting money to productive use. He also said that risk comes from not knowing what you're doing.
Now, some people, as you know, have equated stock market investing with gambling, and it certainly can be similar, especially if you're day trading, but not for those who adhere to certain timeless principles like diversifying your holdings and keeping emotions in check and maintaining a long-term perspective, all of which, by the way, are biblical principles.
So it's true that if you know what you're doing, if you put those principles into practice, the stock market. Represents most people's best opportunity to build wealth. That's well said. Buffett was also famous for not letting global events dampen his enthusiasm for investing, right? Yeah, absolutely.
As he pointed out, in the 20th century, the United States endured two world wars and other traumatic and expensive military conflicts, the Depression, a dozen or so recessions and financial panics, oil shocks, a flu epidemic, and the resignation of a disgraced president. And yet the Dow rose during that time from 66 to 11,497. Wow. And here's one of his related quotes. He said, for 240 years, it's been a terrible mistake to bet against America, and now is no time to start.
So, Rob, two of his most consistent themes that you see in his annual shareholder letters were his endless optimism about American businesses and his almost giddy enthusiasm for the opportunity to become part, or in his case, sole owner of some of those businesses through investing.
Well, and his results speak for themselves. I also think it's interesting to note his acts of generosity. I know he's pledged to give away 99% of his wealth directing. His Berkshire Hathaway shares toward philanthropic causes within 10 years of his estate being settled, which is just incredible. Matt, so appreciate your time and these insights from the great Warren Buffett.
My pleasure, Rob. It's always good to talk with you. That's Matt Bell from Soundmind Investing. Read this full article, The Wisdom of Warren Buffett at soundmindinvesting.org. That's soundmindinvesting.org.
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Financial wisdom for living well, soundmindinvesting.org. Hey, thanks for calling, listening. Also, calling today on Faith and Finance. I'm Rob West. We are taking your calls and questions when you call 800-525-7000.
Go ahead and call right now. Again, that number, 800-525-7000. Our team is standing by. We've got some lines. You'll get right through.
Let's go to Orlando. Hi, Eric. Go ahead. Thanks for picking my call. Yes, sir.
So I have a question about Well, I've never had credit cards before, and I received a Capital One prequalified offer letter stating that we recently reviewed your credit and see that you're staying on top of your bills. That's why you're eligible to apply for this Capital One Platinum Mastercard.
So, so I know that it's because of my car payment, the 2020 Chevrolet that I have. And I'm just wondering: if I actually am approved for this, two things. Do you think it's worth it? And is there a way that I can know that it's actually legit?
Well, it probably is legit. I mean, these come all the time. I get maybe one every few days. The fact that they're saying, you know, you can apply just means that, you know, you fit their profile for somebody that they want to extend a solicitation to, but you're still going to have to qualify for it. And that may or may not be the best card for you.
I mean, the first issue with credit is we don't want to take on another credit card if that's going to, you know, tempt you to borrow money that you can't pay off at the end of the month.
So we only want to use credit cards for budgeted items.
Now, if we're disciplined in our use of credit cards, I don't have any problem with them. I mean, my friend Dave Ramsey would say, no, never a credit card. And we just agree to disagree because I think if you're disciplined in how you manage God's money and you're using credit cards, which by the way, are a little bit more secure than debit cards. If they're compromised, you don't have the money taken out of your account. You got to wait for it to be.
Be put back. You really have no liability from day one if you report it on a timely basis. But also, if you're disciplined and you're only using it for budgeted items and you pay it off in full, well, then I think that's a good use of it. And you can get some rewards.
Now, depending on what kind of award you want, like cash back or travel rewards or things like that, you know, there would be certain cards that would be better than others. You know, I know Capital One has a pretty popular card right now called the Saver. I know Wells Fargo has a great card right now that offers 2% cash back on every purchase. It's called the Active Cash Card. Chase has one called the Freedom Unlimited.
So what I would do is not necessarily just take the one that comes in the mail, but I would go to bankrate.com or nerdwallet.com and research the best card for you. The best card for you, assuming what I said earlier is true, that this is not going to tempt you to borrow money you can't afford. But you're only using it for budget items and you just want to replace your current card with a better one, the best one for you is certainly one with no annual fee. But secondly, it gives you the very best rewards that fit what you're looking for. And again, it's either cash back or travel benefits.
Does that make sense? Yes, sir.
All right.
So bankrate.com, nerdwallet.com. I'd research the best one for you, and then you can go ahead and apply. Make sure that it fits your, you know, they'll tell you right there on those websites what your credit score needs to be. And if it doesn't fit in the range, I would skip it. But if it does, you know, and it stacks up better than the others, then I'd say go for it.
Eric, thanks for your call today. We appreciate it. Tennessee is where we're headed next. Joanne, go ahead. Hi there.
Thanks for taking my call. Yes, ma'am. I listen to you all the time.
Okay, as a grandmother, tell me how I can. Teach my grandchildren or encourage them to save. I mean, especially if their parents aren't teaching them. Do you have any recommendations? Yeah.
Well, you know, I mean, the first thing is that more is caught than taught. And so we've got to model this, which means mom and dad are key. But if that's, you know, not happening quite the way you'd want it to, you know, the Lord's put you in their life for a reason. And so this is one of the ways that you can do that.
So maybe what are the ages of these kids? Oh, the one I'm really wanting to speak to is 20. Oh, 20 years old.
Okay. Yeah.
And so, you know, one option would be you could give them a resource, and I'd be happy to send you one. There's a great resource from some friends of ours. They were Taylor University graduates, and they created a program called Open Hands Finance. And it's a workbook combined with some podcasts. And essentially, it walks them through all of the key ideas of what it means to be a faithful steward, but also practically, you know, how you save for the future, how you, the dangers of debt, the reason you'd want to live generously, how you set up a spending plan.
And it does it in the language and in the approach that would be really, it would resonate with a college-age student. And I'd love to send you that resource, Joanne, just as our gift for you to pass along to your grandchild and just say, hey, you know what? Experience, one of the ways God shapes us is not only through our spiritual journey, but it's through our financial journey. And God's way of handling money is different from the world's. And I'd just love to give you a resource that would help you learn God's way of handling money, beginning with the fact that He owns it all, and you and I are stewards, and money is a tool.
And the moment money becomes our goal, it can become an idol, and that's a real big problem. But when we keep money in its proper place, it can be a wonderful blessing to us and allow us to enjoy God's provision and give generously and promote human flourishing and all the things that come when we understand God's way of everything, but certainly handling money. And so, if you'd be interested, I'll be happy to send you this resource and let you pass it along. I would definitely be interested because he's not interested in the Dave Ramsey approach.
So maybe this is a different one that he would be interested in. Yes. Yeah, good. All right.
Well, you stay on the line. We're going to send you open hands finance and from our friends Brian and Rachel Wong. I think he'll love it. It's phenomenal, and it really is going to cater right to a 20-year-old who's learning to handle money God's way.
So, Joanne, stay on the line. We'll get that in the mail to you. And I appreciate your call. And you sound like a wonderful grandmother. Let's go to Chicago.
Sarah, go ahead. Hi, thanks for taking my call. My question is around just day-to-day management of money. In the last couple of years, God has really given me a lot of increase. uh that I'm really, really grateful for.
However, I don't know like how to maybe handle it right now because Um I live in a one bedroom condo, you know, drive a reasonable car. But with the increase, I mean, I'm single. I can Help. Um my parents It's more. things like that, but I just want to understand how to Deal with the increase because I think you said this to a previous caller, just because your lifestyle doesn't need to change, but how do you kind of manage?
The increase that is coming your way and really think about it through a biblical lens of what g God is giving you and why. Yeah.
Oh, I love that. I mean, you're exactly right. And this is the point at which you need to learn not only the mechanics of money management, although the financial literacy is important, the dangers of debt, and the importance of compounded growth and how you put a spending plan together and live within your means. I mean, all that's essential. The importance of setting goals and giving generously, but also God's perspective and His heart on money and how we should view it and how it can be a rival for our hearts and our devotion to the Lord.
Hey, let's do this. I'd love to connect you with one of our certified Christian financial counselors. These are men and women where their ministry is to help people do just what you're describing. They love it. We're going to pay for it for you.
You'll get several sessions to get on a plan and get moving in the right direction. Sarah, stay on the line. We'll get you connected with a CERT CFC. Folks, we do have room for perhaps one or two more questions before we round out the broadcast today. The number to call: 800-525-7000.
If you have a financial question, 800-525-7000. This is Faith in Finance. We'll be right back. We're grateful for support from Guidestone, whose diversified suite of investment solutions align with Christian values to create positive change in the world. More information is available at guidestonefunds.com/slash faith.
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Or visit faithfi.com forward slash Lebanon. Thanks for joining us today on Faith and Finance. Let's head right back to the phones here in our final segment. By the way, I do have room for perhaps one more question before we round out the broadcast today: 800-525-7000. Jeannie is in Florida.
Go right ahead. Yes, hi, thank you for taking this call. I've always wanted a quote. I always loved the wisdom that you give forth. I have a simple question.
I'm pretty well set financially. I don't owe anything. I tithe regularly. I have a little savings. And I just came into some money, like about eleven thousand dollars, and I'm wondering if you could give me.
Some suggestion as to where to invest this money so that I can get the best return I could get. but yet keep it open that in case they needed it. Yeah, very good, Genie. A couple of questions. If you don't mind sharing these, and if you do, just let me know.
That's no problem, too. What's the total amount that you now have access to? I have eleven thousand well, actually I have fifteen thousand.
Okay. And is that in savings?
Well, it's cash right now. It's just cash.
Okay, you're just keeping that at the house or where is that? Yeah.
Okay. Yeah, exactly. All right.
I probably would only keep, you know, maybe up to two weeks' worth of expenses at the most in cash on hand. I'd put the rest in a savings account, perhaps a high yield account, which are still paying a decent amount of interest, but I'd probably not keep that much cash laying around the house. What about the was it an inheritance or an investment that gift that you received? Truly I had um I had a business that I could I just Sold off, you know, some remnants of it.
Okay, great. And how much do you have from that? That's what I have. I have elev I have eleven. I did have three that I was saving for a new uh, you know, piece of furniture or something.
Okay. Yeah, so I have eleven thousand dollars.
Okay, got it. And then do you have other assets like investments? I do. I have like about $158,000 with Stiffle and Nicholas. I have a broker who takes care of all that.
And then uh yeah, and then in my checking account I have way over what I need to live on. You know, I do have my emergency funds and all that.
Okay. And do you have three to six months worth of expenses in your checking account? Yes, they do.
Okay. Yeah.
So I would probably use a combination of your checking alongside a high yield savings account.
So at eighty, I'd probably have at least six months' expenses. How many more months over six months do you think you have in checking?
Well, let me think. No, you got me having to do math. I would say I probably have right now, my monthly expenses are about two thousand, and right now I have eight. 8,000.
Okay. So you have four months' expenses in the bank, and maybe one month is already spoken for.
So let's call it three.
So I'd probably not, you know, do anything in the way of investments with this additional $11,000. I would just kind of see this as shoring up your emergency fund.
So the goal there would be: how can we get some interest on it and keep it safe, but very liquid in case you need it? And that would be for me a high-yield savings account.
Now, if you're comfortable using the internet, and I realize you may not be, I would typically recommend as a starting point an online savings account.
So, you know, whether that's a CIT bank or Capital One or Marcus, I mean, one of them that's paying somewhere around 4% right now, because that would allow you, let's say you had, you know, $15,000 between the $11,000 and whatever is considered your Emergency in your checking, you know, on $15,000, that would allow you to earn $600 in interest over the next year. It would be very safe because it would be backed by the full faith and credit of the United States government with FDIC insurance, and you'd be completely liquid.
So if you needed to get to it, you could. If you're not comfortable using the internet and opening an online savings account, because those are the only banks that are paying those rates. And by the way, I'd recommend you check out Christian Community Credit Union, joinchristiancommunity.com. They have a special offer right now where you can get up to a $400 bonus with the keyword Faith VI for our listeners. And it's privately insured.
You would know that you're with a banking partner that shares your values as a Christian. And again, it's joinchristiancommunity.com.
Now, if you said to me, Rob, I just want to stay with a local brick and mortar operation where I can walk. In the door and look somebody in the eye. I don't want to do it online. Then I'd probably say, let's look around in your area there in Florida and see if you can find a credit union perhaps that's offering a rate somewhere close to 4%. And then I would go with that option.
Which sounds like it'd be the best fit for you?
Well, I have looked around here and I've looked even in my own bank, and I understand it's sad I am less risky.
So I was thinking of doing it online, but I was a little skeptical. But I do like what you just told me about the community. What is it called? I don't have a pencil.
So I look all over my car. I have not one pencil or pen. If um Yeah, well, I think this would be easy to remember, or we could have you hold the line, and our team could get your phone number, and we'll send you a text message or an email with the information. But essentially, when you get home and you get in front of your computer, you're going to want to go to joinchristiancommunity.com. And that's going to be a credit union that shares your values as a Christ follower.
And they have a high-yield savings account that you could use. And there's that special bonus offer for FaithFi listeners where you could have an additional $400 added to your account. But it's a full service banking partner. Part of every dollar that you invest, you know, you put with them would go to Christian ministries and they pay 5% APY on balances up to $5,000. And then it's a nice interest rate beyond $5,000.
And then you get this bonus of up to $400 when you use the keyword FaithFi.
So why don't you stay on the line? Our team will get your contact information and we'll get in touch with you with all the details, okay? I'm so glad. You know, I put your phone number into my phone. I don't have a computer.
And it rang.
Well, there you go. Oh, I guess it was a good time.
Well, I'm so glad that you did, Ginny. Thank you so much. You're welcome. Thank you. We'll get your information, and one of our team members will get in touch with you to give you all the details.
Thanks for your call today.
Well, we covered a lot of ground today. Hey, before I let you go, let me remind you: if you're looking for an advisor that shares your values, we recommend the Certified Kingdom Advisor designation. 1,500 men and women across the country have met the high standards in character and competence, but they've also been trained to bring a biblical worldview of financial decision-making to their professional advice. They've also had pastor and client references. You can find a CKA in your city when you head to faithfi.com and click find a professional.
That's faithfi.com and click find a professional. I hope you'll come back and join us next time on faith and finance when we go back to God's word and look for biblical wisdom for your financial decisions. decisions. Faith in Finance is provided by FaithFi and listeners like you.
