To revolutionize an industry, you need a unique team.
Today, we are excited to announce that Sheikh Dr. Yasir Qadhi will be joining Wahed Invest as an ethical advisor.
Our commitment to making halal investing accessible and to helping our community better plan for their financial future, gives us the pleasure of working with prominent scholars in the industry.
Expertise and Dedication to Helping our Community
Sheikh Dr. Yasir Qadhi has more than 20 years of experience as an Islamic scholar and has published numerous books and articles. He currently serves as Dean of Academic Affairs at AlMaghrib Institute, one of the leading and influential institutions in the western part of the world. He leads numerous activities that help improve our communities and build better future generations through education. He also serves as a Professor at Rhodes College, and as a Resident Scholar of Memphis Islamic Center.
Coupled with his renowned professional career is his exceptional academic background, enabling him to be an expert in various subject matters. He has a B.Sc. in Chemical Engineering from the University of Houston, a Bachelor’s from College of Hadith and Islamic Sciences at Madinah University, a Master’s in Islamic Theology from College of Da‘wah and a PhD in Religious Studies from Yale University.
Sheikh Dr. Yasir Qadhi shares our vision and is excited to assist us in our journey to providing all ethical investors with access to an investment platform. Common themes across the companies that Sheikh Dr. Yasir supports are innovation, impact, and integrity.
We asked Sheikh Dr. Yasir a few questions about investing from a scholar’s perspective:
What drew you to halal investing? and why is it important?
Our Prophet (SAW) said, ‘How beautiful is pure money for a righteous man!’ [Reported by al-Bukhari]. Money is something that intrinsically is beloved to all people, and while it is indeed one of this world’s most difficult tests, it is also one of the best and most efficient manners of earning Allah’s pleasure. Each and every penny that we earn and spend can become an act of worship if it is done properly. Our Prophet (SAW) would regularly pray to Allah to be blessed with ‘rizqan tayyiban’, which translates as pure and blessed sustenance.
In our times, investing in stocks is one of the most common and (if done properly) effective ways to increase wealth management. I have been investing in stocks for over two decades (I started when I was a teenager!), and I believe that every intelligent person should have some of his/her assets invested in a halal manner.
What are some of the characteristics of Halal Investments versus Traditional Investments?
In a hadith, we learn, “Allah is pure, and He only accepts that which is pure”. It is imperative that we take precautions regarding where we acquire our wealth from, for we are told that one of the main causes of our prayers not being accepted is by consuming that which is filthy and unethical.
Halal investments would be compliant with the laws of Islam. Companies that profit from war, or peddle in evils like adult entertainment or alcohol, or deal with blatant usury in stocks and bonds, would be forbidden to invest in. Specialists in Islamic finance understand that it is almost impossible to avoid companies that have no interest or debt, so they have devised rules, based on guidelines from the Quran and Sunnah, that have been accepted by most scholars of Islam.
Wahed Invest abides by these standards and in fact takes extra precautions as well.
What is diversification and why is that important from both a financial and Islamic standpoint?
Allah tells us that He is the one who has gifted us our wealth, and He has placed us in charge of it. The Quran commands us to not waste our money or hand it over to those who will use it foolishly. Being cautious is one of the hallmarks of a believer.
And in today’s volatile world, it is imperative that every person who is concerned about his or her financial future diversify our sources of income.
Our Prophet (SAW) himself had multiple sources of income. Throughout his life, he at times worked physically, and traded, and purchased and sold, and had lands that gave revenue. So too a majority of Companions acquired wealth through multiple channels.
All experts in the industry agree: to diverse one’s assets and sources of income is a no-brainer that anyone who is able to should do. In the investment industry, ‘diversification’ implies that stocks in a wide range of fields and of various degrees of volatility will be invested in, rather than sticking to only one particular company or stock. The wisdom behind this is that such a diversification will better insulate the investors from changes in a particular market.
Imagine a farmer who only has a field of apples. If even one particular disease were to spread, it might potentially wipe the entire product out. Now, imagine a farmer who has multiple fields, in different locations, of a variety of fruits. Even if one field yields less for any reason, the other fields will in all likelihood not be affected. So too with diversification. And the model that Wahed uses to invest is one of the most intriguing to me, and one that caters to the user’s needs and risk-level.