By the Grace of G‑d
5726 [1966]
Brooklyn, N.Y.
Greeting and Blessing:
Regarding your question about investing in stocks, generally I am not in favor of it, since this is largely a matter of speculation. Indeed, a prominent businessman once said to me that he did not wish to engage in the kind of business where he and an ignoramus have the same chance. It is particularly objectionable because of the anxiety and nervous strain that it creates in some people. Moreover, in these unsettled days, there is too great an element of speculation involved in the Stock Exchange. It is surely possible to find some more fitting investment opportunities, if an investment is contemplated, than the kind of thing which sends the investor scurrying for the first edition of the Stock Exchange report in the morning newspaper.
With blessing,
Re: Please help me understand... The Rebbe discouraged people from trying to make a quick dollar quickly. The difference between investing in stocks and a regular business is that with stocks it is a lot more likely for there to be drastic changes from one day to another. Of course, the pay off in such a case can be tremendous, but so can the loss. The Rebbe wanted people to avoid this uncertainty.
Poor argument Not true. You can have much more variation in a business day to day than stocks.
You can also hold the stocks until you plan to consume that income, thereby not being affected by short term changes/ uncertainties.
This is a poor argument.
The only part of the argument that is o.k is the part on the ignormarus. It’s also pretty poor, since there’s art and science to investing that not everyone knows. But wow it’s just mean, didn’t have to go there about the ignoramus. Could have brought up being a more direct part of you community, engaging in business that is more revealed, engaging in things where you can contribute more directly and have more direct influence over.
Your own business could have much more volatility and stress day-to-day and opportunities to 'make a quick buck' than the stock market.
I’m the one who originally the question on Dec. 6, 2016 to which E. Zalmanov responded. As I mentioned I’m a finance professional and a Lubavitcher. I looked into this more and I think I came to a more satisfactory answer, though the Rebbe doesnt seem to focus on that here. And that is that in the stock market you have *no* control over the value of your stock. Whereas if you open a shop, you run you control the business. And even if you invest it with a company who invests your funds, there is still a lot more influence you can have on the use of your funds then say buying an Apple stock where you have zero influence on your funds.
That *lack of control* is actually what drives people to constantly check their stock values.
As with all of Judaism, the Rebbe encouraged people to *put effort*, since that’s the vessel for blessing.