Enemy Number Three is Threefold
While I probably won’t cover every enemy of the investor, there is something to be gained from recognizing your enemy. Enemies often use disguise or camouflage to make them hard to spot. They can also set up weapons that look real but aren’t useful or active.
In the two previous posts in this series I talked about the “more is better” enemy that refused to be satisfied or content. The second one talked about the lack of value in opinions, or at the very least, seeking only one opinion for the decisions one usually has to make. In this post I want to expose an enemy that is often ignored, but each of us carries it with us. This enemy comes in different disguises. It is sometimes called fear. At other times it is called worry. And then, when looking back it is called regret.
Fear, Regret, and Worry
There are times when two of these have value. For example, it is a good thing to be afraid or fearful, as long as you are afraid of the right thing. “The fear of the Lord is the beginning of knowledge; fools despise wisdom and instruction.” – Proverbs 1:7 I believe the fear of the Lord is one of the few things where fear (respect, honor) is appropriate. But most fears are tied to unhelpful emotions like worry or an erroneous world view. If you have a biblical world view, things change.
It is also sometimes helpful to have regret. Regret is helpful if it is “godly grief.” “For godly grief produces a repentance that leads to salvation without regret, whereas worldly grief produces death.” – 2 Corinthians 7:10
Worry, on the other hand, has no value when properly understood. Jesus said worry was an anxiety that focuses on the wrong belief. In Matthew 6:25-34 Jesus said something to his followers that we all need to hear and remember. He essentially told them to be bird watchers or to take a walk in the garden and observe God’s creation.
“Therefore I tell you, do not be anxious about your life, what you will eat or what you will drink, nor about your body, what you will put on. Is not life more than food, and the body more than clothing? Look at the birds of the air: they neither sow nor reap nor gather into barns, and yet your heavenly Father feeds them. Are you not of more value than they? And which of you, by being anxious, can add a single hour to his span of life? And why are you anxious about clothing? Consider the lilies of the field, how they grow: they neither toil nor spin, yet I tell you, even Solomon in all his glory was not arrayed like one of these. But if God so clothes the grass of the field, which today is alive and tomorrow is thrown into the oven, will he not much more clothe you, O you of little faith? Therefore do not be anxious, saying, ‘What shall we eat?’ or ‘What shall we drink?’ or ‘What shall we wear?’ For the Gentiles seek after all these things, and your heavenly Father knows that you need them all. But seek first the kingdom of God and his righteousness, and all these things will be added to you. Therefore do not be anxious about tomorrow, for tomorrow will be anxious for itself. Sufficient for the day is its own trouble.” – Matthew 6:25-34
Making It Real with Medical Properties Trust (MPW)
Medical Properties Trust is a REIT. The news has not been good. Here are some recent headlines from Seeking Alpha: “Medical Properties Trust cut to Neutral as Mizuho sees longer recovery.” “Medical Properties Trust downgraded to Underperform at J.P. Morgan.” “Medical Properties Trust slashes dividend to strengthen balance sheet.” “Medical Properties Trust calls hold on Prospect deal standard and expected.” “Medical Properties Trust stock sinks after report that Prospect deal is put on hold.” These headlines can produce regret, fear, and worries.
I own shares of MPW, and I purchased shares of this REIT for Cindie and for our grandchildren. One rational response to the one-year 59% decline in MPW’s stock price is fear. Another is regret. Still another response is worry. Will the stock go lower? Will MPW be forced into bankruptcy? Why didn’t I sell sooner? What else can go wrong? All of these questions can be the result of fear, regret and worry. Those emotions are not helpful for the rational investor. There are other emotions that can also be in play when this happens, so don’t think these are the only ones that can be your enemy.
Why Worry, Regret, and Fear Aren’t Helpful
Admittedly, the overall impact of MPW on our investments is minimal. But I use MPW to highlight the danger of these emotional enemies. Far too often investors have misguided fear or regrets and worries when it comes to their overall investments. As a result, they buy “safe” investments. They ignore the realities of inflation. They also ignore the long-term reality of asset appreciation of various types of assets. As a result, their fears and worries cause them to by CD’s or keep cash and bonds because those are less volatile and sometimes less risky.
One of the Wall Street Journal reporters I follow is Anne Tergesen. She wrote a helpful piece (September 23, 2023) about “Should I Take a $44,000 Lump Sum or Keep a $423 Monthly Pension?” I liked how she analyzed her situation and I think she made the right decision. I also appreciate something she said in the article: “I hate to admit it, but my decision is also an emotional one. When I consider what my 2015 lump-sum would have grown to had I invested it in the stock market, it is hard not to feel regret. Since Jan. 1, 2016, the S&P 500 has earned a 12.25% annualized return.” (1)
Almost every life decision has emotional components. Emotions aren’t bad unless they are the primary controlling factor. We are to be controlled by truth, not by appearances or the host of maybes of life. So don’t let the enemies of fear, regret, and worry dictate any of your life’s choices, perceptions, or purposes.
A Better Way
There is a better way to approach life. To do this, one must have a biblical world view. The antidote is found in Hebrews 10:35-36. It talks about confidence, and it has to do with faith in God. The passage starts with “therefore.” “Therefore do not throw away your confidence, which has a great reward. For you have need of endurance, so that when you have done the will of God you may receive what is promised.” – Hebrews 10:35-36
Never read a “therefore” without reading what came before. For the Christian, Hebrews 10 is a reminder of the finished work of the Lord Jesus Christ for a much bigger problem than our investment portfolio woes, fears, regrets, and worries. In verses 19-25 we have this encouragement: “Therefore, brothers, since we have confidence to enter the holy places by the blood of Jesus, by the new and living way that he opened for us through the curtain, that is, through his flesh, and since we have a great priest over the house of God, let us draw near with a true heart in full assurance of faith, with our hearts sprinkled clean from an evil conscience and our bodies washed with pure water. Let us hold fast the confession of our hope without wavering, for he who promised is faithful. And let us consider how to stir up one another to love and good works, not neglecting to meet together, as is the habit of some, but encouraging one another, and all the more as you see the Day drawing near.” – Hebrews 10:19-25
If your only hope is in the advice of your advisors and your own skill in the world of investing, then perhaps you should be worried and fearful. But those emotions won’t help you. Don’t let them be your enemies any longer.
All scripture passages are from the English Standard Version except as otherwise noted.
- Link Wall Street Journal
Know Your Flocks & Herds 