When they saw the star, they rejoiced exceedingly with great joy.
—Matthew 2:10, The Holy Bible
What is the definition of value?
What is it, really?
Well, if you ask a short-term trader, they will tell you that it’s all about tracking the price action. Following the movement of a 50-day trend. Placing a speculative bet. Then, if luck allows it, capturing a quick profit.
But if you ask a long-term investor, well, they will tell you something quite different. The process of finding value is about ignoring the short-term noise. It’s actually about doing extensive research. Carefully planting the right seeds in the right soil. Then waiting patiently for them to sprout in due time. After all, financial success is not measured in days but years.
So, bearing this lesson in mind, I’m looking back at the Christmas story which unfolded over 2,000 years ago.
I can’t help but think of the Biblical Magi.
We often call them the Three Wise Men.
But perhaps we should call them the first value investors in history.
Source: Image generated by OpenAI’s DALL-E
What made the Magi so special? Well, I believe it was the due diligence that they carried out.
- These men were scholars, likely from Persia. They had studied the ancient Hebrew scriptures. They had tracked celestial movements. They were detail-oriented. Obsessive, even. They had waited years for the right moment.
- Eventually, their patience paid off. They spotted a pattern in the noise. An unusual shimmer had appeared in the night sky. It was the Star of Bethlehem.
- For them, this was a ‘buy signal’. So they acted decisively, devoting capital to their conviction. This wasn’t a paper trade. This was a full expedition. They embarked on a long journey, travelling hundreds of kilometres across dangerous terrain. Why? Because they believed that the intrinsic value of what they were seeking was precious.
Source: Image generated by OpenAI’s DALL-E
What happened when the Three Wise Men finally arrived at their destination? Well, here’s the twist:
- To the casual observer, it might appear that their journey had been in vain. The prize they had come all this way for was disappointing. A peasant boy? Born in a stable? Surrounded by farm animals? To put it frankly, this asset appeared to be a penny stock. An underperformer. Lousy quality. After all, there was no palace here. No royal guards. No visible signs of aristocratic lineage. Was this just a waste of time?
- However, the Magi were wise enough to look past superficial appearances. Because they already understood the fundamentals. They recognised that true value doesn’t require luxury. What was more important to them was what they saw: divinity wrapped up in humility.
- The Magi knew that this little startup in Bethlehem was actually the most valuable enterprise they had ever come across. It was a humble beginning that would sow the seed of a revolution. A revolution of the heart. One that would transform the world.
Of course, the instincts of the Three Wise Men proved to be right.
- That seemingly insignificant little boy would grow up to be very significant indeed.
- Over the centuries, the legacy of Jesus Christ would blossom, expanding steadily. It would compound in a way that few could have anticipated.
Here’s an observation from Ben Carlson in his blog, A Wealth of Common Sense:
1,000 years after Jesus walked the earth the world was barely any richer. It took 500 years for income to double from there. Then between 1820 and 1900, the world’s income tripled. It tripled again in a little more than 50 years. It took only 25 years for it to triple again, and another 33 years to triple yet again.
How did this miracle happen? Tom Holland, in his book Dominion: The Making of the Western Mind, offers a compelling argument:
- He suggests that the very air we breathe in the West is thoroughly saturated by the Judeo-Christian revolution. Indeed, this has been the driving force behind our concepts of human dignity and social mobility.
- Western morality, even in its most secular form, remains divinely inspired. And it has served as a foundation to create a more prosperous world over the long run.
- From nutrition to healthcare; from education to electricity; the march of progress has been astonishing. Even the poorest person living today enjoys a quality of life that the average person living 100 years ago could only dream of.
- Yes, human prosperity has snowballed over time. Across decades. Across generations.
Source: Charlie Bilello
So, ultimately, what does this message mean for us? Right here? Right now? At this point in history?
- Well, you already know this. We live in a very noisy world. We are constantly bombarded with provocative headlines. It is easy enough to be fearful. It’s easy enough to be distracted.
- But watch out. The media will tell you about what’s gone wrong in our world today, but they will tell you nothing about what’s gone right.
- That’s why it’s necessary to look beyond the short-term noise. Remember the example set by the Three Wise Men. It can be helpful to pause. To reflect. To study. Because life-changing blessings can often appear in the most unlikely of places.
Source: Peter Mallouk / LinkedIn
The greatest wealth isn’t always found in a bank account. Sometimes it’s found in the quiet conviction of faith. In the relationships we nurture. In the hope we hold for the future.
- This Christmas, I am hoping that you find a special kind of clarity. May you have the wisdom to spot the Bethlehem Star in your own life. And may you have the courage to follow it, even when it leads you off the beaten path.
- So take a breath. Look around the dinner table at the faces of those you love. Celebrate the wins. Forgive the losses. And remember that no matter what the markets do next year, the things that matter most are already right in front of you.
- Plant your seeds thoughtfully. Seek out the undervalued. And remember: true prosperity compounds not just in portfolios, but in hearts touched by grace.
- Good tidings. Shalom. Peace unto you. May the light of this season guide your path into the New Year.
Merry Christmas,
John Ling
Analyst, Wealth Morning
(This article is the author’s personal opinion and commentary only. It is general in nature and should not be construed as any financial or investment advice. Wealth Morning offers Managed Account Services for Wholesale or Eligible investors as defined in the Financial Markets Conduct Act 2013.)