• The article explores how Talmudic teachings can be applied to modern investments, particularly with regards to Bitcoin.
• According to the Gemara, a Jewish oral tradition, one should divide their assets into three equal parts – land, cash on hand and risky assets.
• Investing in real estate has been a stable practice for thousands of years, with expectations of the real estate market growing at an annual growth rate of 10.7%.
Investment Strategies from the Talmud
This is an opinion editorial by Konstantin Rabin, a finance and technology writer.As a huge supporter of all things crypto, and especially Bitcoin, my thoughts often drift to a time before this revolutionary technology appeared on the scene, and I stand in awe of what it is bound to accomplish. I wonder: How would our forefathers have looked at it, and how can we use their teachings, applying the thought of the old thinkers to our modern existence? While the money management strategies that can be found in books from thousands of years ago might seem crude or irrelevant to us today, I have always tried to look past the words on the page and into the meaning behind them to figure out what lessons they might teach us today. One day, while chatting with a friend about this, we considered why Bitcoin might even be backed by Talmudic teachings.
Rabbi Isaac’s Three-Part Investment Strategy
I’m not a religious person by nature but it is hard to avoid conversations that stray off into that realm when sitting with some of your Jewish friends who are keen students of the Talmud and all things relating to Judaism. So one night as I sat with one of these friends he brought up the Gemara which incorporates investment advice often praised for its simplicity and effectiveness.. The 63 books of Gemara serve as commentary on Mishnah which in turn serves as first major writings Jewish oral traditions spanning hundreds years section my friend was referring though reading goes follows:
“R. Isaac also said: One should always divide his wealth into three parts: (investing) a third in land;a third in merchandise;and (keeping) third ready hand.” –The Gemara Tractate Baba Mezi’a 42a
The Traditional Jewish Portfolio
The idea is that in order invest money proper way should divide assets three equal parts spread equally among land cash hand risky assets Hence traditional Jewish diversified portfolio would look like A Third In LandLand — if generalize real estate — most stable investments Buying holding onto land any other type residential commercial real estate has been practice thousand years just valid today expectations real estate market growing compound annual growth rate 10 7% 2022 2031 Hence keeping portion funds real estate seems great wealth preservation well hedge inflationary risks
Bitcoin as Part Of Your Portfolio?
My friend argued that perhaps Bitcoin could be seen as part traditional Jewish portfolio theory After discussing implications this statement had both financial philosophical levels we concluded that indeed Bitcoin does seem fit well within framework such traditional portfolio due its unique characteristics decentralized nature low volatility potential high returns In addition even though traditionally investing physical gold silver were part Mishnah’s recommendations digital asset much like Bitcoin could easily substitute those two precious metals since they share many same properties including scarcity divisibility portability fungibility durability
In conclusion we discussed how ancient wisdom such Talmudic teachings can still apply modern life situation particularly when comes investing understanding importance diversifying risk protection inflationary environment With rise crypto currencies like Bitcoin being digital form tangible store value new ways preserving purchasing power available us allowing access potentially lucrative markets previously unavailable