"People Don't Realize the Dangers of a Single Investment"

Not long ago, a devout Jew from the U.S. approached the 'Keter Institute for Torah Economics' with an interesting request: He wanted to invest in an Israeli company that developed a mechanism to disable WhatsApp and SMS notifications while driving, for passenger safety. He saw potential in the investment but emphasized to the company's owners that he would only invest if they did not violate Shabbat. Naturally, the managers saw this as a major issue since many clients wanted the service operational during Shabbat.

The investor was adamant, and since the investment was significant to both parties, they arranged a transatlantic call including the company managers, the investor, his personal rabbi, and representatives from the Keter Institute. Ultimately, after hours of discussion, they found an exceptional solution that prevented desecration of the Shabbat, while ensuring the company was satisfied and felt its clients were not adversely affected.

Rabbi Shlomo Ishon, the chief rabbi of Ra'anana and chairman of the Keter Institute, recounts this story. Intentionally, he refrains from detailing how things were made possible, as each case is unique, and one cannot assume that one story applies to others. However, the message, in his view, is clear: "When one puts in the effort, it's possible to make good, efficient, and profitable investments while adhering to all Halachic rules," he emphasizes, "what you mainly need is awareness and desire."

According to Halacha

Rabbi Ishon describes the Keter Institute as established thirty years ago. At that time, there were institutes dealing with medicine and Halacha, fertility and Halacha, and various other fields, but the subject of economics and Halacha, considered so prevalent that people encounter it almost everywhere, was barely addressed.

"Back then, a group of businessmen concluded that such an institute was necessary and approached my friend Rabbi Yitzchak Bezek, who asked me to serve as the institute's chairman. Since then, I have held the position and witnessed the growing number of questions. Our institute doesn't just provide Halachic answers but also operates in research fields. We have published 14 books rich with research in Halacha and economics, noteworthy for being applicable, as they offer practical guidance."

What subjects are mostly discussed at the institute?

"Our most popular subject is the topic of business permits for kosher investments," explains Rabbi Ishon. "When we entered the field, the subject was almost untouched, and awareness was low. In recent years, there's been significant development, thank Hashem."

Rabbi Ishon emphasizes that discussions about business permits involve multiple aspects, including questions about interest-laden loans, which must be avoided, but also questions about purchasing securities that could involve interest. Moreover, Shabbat observance issues could arise with companies traded on the stock exchange. "According to Halacha, investing in stocks of a company that desecrates Shabbat isn't simple," he explains, "but the subject is much deeper than it appears, as it isn't just about checking if a corner store is open on Shabbat. We're dealing with stock exchanges featuring subsidiaries of large corporations with extensive activities, some of which are essential, like security, and must operate on Shabbat. What happens in such cases?"

Rabbi Ishon emphasizes that the institute has mapped all the companies currently traded on the Israeli stock exchange concerning both Shabbat observance and interest, and they maintain an updated list of approved securities, including stocks and bonds that can be bought without fear of transgression.

If we invest in a foreign-owned company operating abroad, will the problems naturally resolve?

"When it comes to a non-Jewish company, there isn't a concern about interest or Shabbat desecration," confirms Rabbi Ishon, "but one must pay attention to what qualifies as a 'non-Jewish company,' a question we explore extensively in our research. For instance, if a company issues stocks with 90% of investors being non-Jews and 10% Jews, how do we define it? The basic question should also be asked: Is a company's identity determined by shareholders or by its owners? Even if we decide it is solely a non-Jewish company, one must check what it deals with. For example, if it markets forbidden foods, that could be problematic, and it's a question we must consider. These are questions we delve into often, and we frequently receive inquiries about them."

Without Halachic Concern

But the institute isn't just consulted on investment matters; it addresses routine issues as well. "There's hardly a day we don't receive questions about personal conduct according to Halacha," specifies Rabbi Ishon, "many questions concern reporting to authorities and income tax – whether it's necessary to report, whether receipts should be issued, and various questions from people worried mainly about theft. People also seek advice on Halachic contracts, wills compliant with Halacha, and matters of charity and tithes."

And there's also an ongoing emotional question. "We are frequently asked about the subject of 'pidyon haben'," says Rabbi Ishon, "although it's known that one must pay the Cohen five selaim, it's not clear what their value is in today's currency, especially since it changes daily according to the official dollar rate and global stock exchange metal prices. We make sure to publish the 'Halachic Official Rates' on our website daily, and before Purim, update the 'Machatzit Hashekel Rates' relevant for the period."

Are there cases where an observant Jew might seemingly miss opportunities because of strict adherence to Halacha?

Rabbi Ishon prefers to answer with a story: "A few years ago, there was a large company popular for investments. Every respectable investment portfolio included it, but according to our research, it employed hundreds of Jews who worked publicly on Shabbat. When people consulted me about investing, I advised against it, although I never dictate, as is my usual practice. I also didn’t express an economic opinion, only mentioned that the investment isn't recommended. Not long after, that company collapsed, and many who invested lost significant sums.

"However, the main point is it doesn't matter if there was financial loss or not, because our goal in all this activity is to ensure that just as a person doesn't purchase non-kosher food or leafy vegetables without checking for insects, they should also avoid financial investments contrary to Halacha. Our goal is to ensure we're confident that our money involves no risk of sin. I also want to emphasize that today, there are enough securities on the stock exchange traded without Halachic concern, providing similar profit opportunities as other securities, so there shouldn't be apprehension about losses."

"There Is No Investment Without Risk"

Have you ever saved people from risky investments?

"We are very careful not to provide financial advice," Rabbi Ishon reiterates, "but we can certainly alert those who consult us to pay attention to certain points that could be risky in a business sense. Because sometimes there are purportedly investments defined as such, but delving into their essence reveals they are more of a gamble, leading to Halachic questions regarding gambling, in addition to the significant economic concern. But as I mentioned, we only bring people's attention to these points, never deciding their course of action."

Do you think the religious and Haredi community encounters more risky investments?

"I haven't closely examined this, but I can express regret that in the religious and Haredi communities, there are not infrequent cases of familiar individuals whom we trust, people known from the community or synagogue, proposing very tempting ideas. But precisely from such scenarios must one be cautious, because there's a clear rule – there's no such thing as promising high returns without risk, and if someone promises a guaranteed high profit, without any risk at all, it must trigger a red alert."

Finally, do you have advice for someone who wants to manage their finances strictly according to Halacha?

"It's important to remember that income is from Heaven. We must make our effort and manage our businesses as correctly as possible, both regarding Shabbat and interest observance, and fairness. Because an honest person who ensures fairness with those around him will see only blessing in this. When uncertain, one can always consult rabbis and Halachic authorities knowledgeable in the field, and we would be happy to support private individuals and companies without charge; most importantly, one should pray and ask from He who provides our general and individual sustenance."