Of Faith & Finance III: The Ecclesiastes Investor

Koheles is the story of Israel’s famous King Solomon. After amassing immense wealth- riches unimagined by the generations that came before him- he’s left wanting more. He is aware that his riches are unheard of among his nation and simultaneously sees that the meaning of such distinction is fleeting: One generation goes, another comes, But the earth remains the same forever. (Ecclesiastes, verse 4)

Few of us are King Solomon. As melancholy as his reflections in Koheles, many would gladly still trade places with him. After all, money does not buy happiness, but neither does poverty. If only we had the problems of Solomon and his opulent court! The complaints of the owner of the mysterious mines of Solomon may seem light aside our own; working with households of diverse backgrounds and challenges, I understand this all too well.

Still, the sentiments expressed in Koheles ring true in our times. My grandparents could hardly envision they’d one day speak face to face with their distant kin in Europe over the internet, and yet they do whenever they want and at minimal cost. They have the enviable privilege of knowing the new generations even of remote family. Electric luxury cars now partially drive themselves and look fantastic doing it. The capital amassed by the past three generations combined, so many of whom are now living, would leave the subjects of Solomon in awe if they could see it.

Did it make us happier? We may be healthier and live longer lives. We may have the opportunity for connection with each other in ways those who came before us longed for yet could hardly imagine. In Portland, where I work from, our city could hardly dream it would become the 8th wealthiest city in America in 2019 even 5 years ago. Yet the woes of Koheles are ours. Depression, anxiety, and all manners of spiritual and psychological distress have grown alongside our brokerage accounts and 401(k)’s.  There is nothing new under the sun– not even the hollowness of success. Koheles may as well have coined the word affluenza.

For some, Koheles gives all the answers that they need- that all of the accumulation we do will never be for naught so long as we know why we’re pursuing it. That so long as there’s a purpose, we will feel in some part gratified with our earnings.

Some point to the cohesion of Koheles’s final verse for their answers:

G-d will call every creature to account for everything unknown, be it good or bad. The sum of the matter, when all is said and done: Revere G-d and observe His commandments! For this applies to all mankind. 

Perhaps we can derive a universal meaning from this verse: the point is to be doing something that matters on the universal scale. To apply our resources to something bigger than ourselves and to be humbled by the cumulative scale of creation. Indeed, here we are again, about to read the inspiring story of Bereishis. Maybe it’s tzedakah or charity; politics or activism. I can’t disagree with such take-aways per se, and I think these are some of the many answers Ecclesiastes avails. Far be it from me, after all, to tell an observant Jew that following the commandments is not the right answer. 

As I read Koheles once again this year, I reach a very different conclusion. Koheles itself does not contain a singular, definitive answer. If self-satisfaction is what we seek, this is perhaps the last text we should read. Investors need to ask themselves with deep introspection the questions Solomon asks himself. I propose investors read Ecclesiastes not as a long build up to an inspirational quote. An annual meditation on our purpose as investors is more important than a yearly justification for our rebalancing, our tax loss harvesting, our Required Minimum Distributions, etc.

We should not tidily excuse ourselves for the risks we’ve taken and the sums we’ve earned. What real value is there for an investor in all he gains under the sun? The answer doesn’t have to be easy. Perhaps there is no answer. The question should still be asked. In my experience as an advisor and an investor, the answer changes every year.