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Chabadinfo in collaboration with Beis Moshiach Magazine presents: The Rebbe’s Opinion On, a series featuring the Rebbe’s opinion and directive on various subjects • A selection of letters and sichos of the Rebbe on the topic of investing in stocks and the lessons one can learn from this industry

“Generally, Not in Favor of It”

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. (From an undated 5726/1966 letter)

Stocks or Real Estate?

This is to acknowledge receipt of your letter of November 24th. May G-d grant that your moving and settling in Amsterdam should be in a happy and auspicious hour.

With regard to your reference to investment in stocks or real estate – my general opinion in regard to stocks is that I am not in favor of substantial commitment in the stock market. One of the reasons is that it often creates a nervous strain because of frequent and often substantial price fluctuations, which is not the case with other more secure and stable investments. (From a letter dated 11 Kislev 5729/1968)

When To Sell?

With regard to the question of stocks, my opinion is that they should not be sold if there would be a loss, G-d forbid. Otherwise stocks should be sold on the advice of an experienced broker at such time the broker thinks is right for the particular stock.

Generally speaking, I have no right to withhold my general opinion that it is not a good idea to invest in stocks the major part of one’s savings. In addition to the consideration that such an investment would be of questionable financial prudence, there is also the factor of the nervous strain that the stock market fluctuations cause to the investor. Also because such a situation is completely independent of the investor’s intelligence and judgment, or at any rate, largely so. Finally, the present day and age is full of unpredictable developments, and the market is highly sensitive to national and international events. In view of all this, those who ask my advice with regard to the stock market, my usual advice is to rather forgo a percentage of dividends, and invest in more secure and suitable investments.

I emphasize “those who ask my advice.” However, since you have not asked my advice, I will not say that you should necessarily act accordingly. May G-d grant that whatever you decide should be with Hatzlocho to enjoy your Parnosso, and to use your earnings on good, wholesome and happy things, especially in the advancement in matters of Yiddishkeit in general, and the Torah-true education of the children in particular, and that you and your husband should bring them up to a life of Torah, Chuppah and Good Deeds, in good health and ample sustenance. (Letter to Mrs. Sarah Rifka Rosenbloom, 5 Kislev 5729/1968)

Who Runs Wall Street and Why?

Chazal in the Medrash interpret the words “kol haneshama” (from the passuk “Every soul (kol haneshama) shall praise the L-rd”) as “al kol neshima – for every breath” man breaths he must praise Hashem.

The Medrash presents here a novel perspective: Hashem fashioned humanity, encompassing not only Jews but all, with an immutable decree—life necessitates breath. Irrespective of willingness or enjoyment, one is bound to inhale, devoid of choice. This decree applies universally, to both man and animal alike, even among anomalies. Despite other pursuits, one fact endures—a living creature breathes.

The Midrash proceeds to propose that in moments of involuntary respiration, where it appears one is coerced, an opportunity manifests: acknowledge that every breath necessitates an act of Divine will. This revelation prompts contemplation—should one not then express gratitude to Hashem “for every breath”?

Furthermore, works of Mussar (and other works) underscore a fundamental tenet: familiarity begets a presumption of normalcy, fostering a sense that the accustomed state is the natural order. Consequently, an individual must work on internalizing the fact that such customary circumstances are not within their dominion and that “All has been formed by His word.”

For example:

When one orchestrates substantial financial “spin” and nonetheless reaps large, unexpected gains, the primal instinct, even of the Animal Soul, attributes the success to Hashem; yet, when minor gains emerge from only a small business maneuver, or even from normal routine endeavors such as purchasing a share within a vast corporate conglomerate on Wall Street and the share goes up in value overnight, the Animal soul begins to question:

Why do you wake up and thank Hashem? The company you invested in is a vast corporate conglomerate of which only a small portion of shares is allocated to the Jewish populace, you being one of them. When collective dividends escalate, the primal perspective asserts that according to the rules of “Wall Street,” your stock also goes up predictably—therein lies no miraculous intervention here! You thanking Hashem for this is dishonest, there is nothing Jewish about it! You are a tiny fraction of a percent of all the company’s shares!

Alas, such a viewpoint belies veracity, for it neglects the intricate interplay of Divine intention.

Contrastingly, the Torah imparts an alternate lens—the shares’ consortium, “Wall Street” itself, and even the astute traders, collectively exist to serve the individual. Divine design extends to individual success, augmenting acquisitions, and currency, thus imbuing existence with purpose—the universe a stage for personal triumph.

Considering the reality that Hashem orchestrated “Wall Street,” one comes to realize that this whole industry replete with brokers and even the shrewdest traders, some shrewder than himself, including the preeminent ones, was created for you to facilitate your personal “spin” or venture which will enable better financial prospects for you and thereby enabling your greater giving of Tzedakah!

Henceforth, comprehending this intricate tapestry, the need for gratitude becomes evident. However, internalizing this conviction proves arduous, especially in the context of being appreciative “for every breath.” (Adapted from a sicha from Rosh Chodesh Mar-Cheshvan 5742/1981)

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