3 Investment Choices of Prophet Muhammad SAW, Can Serve as an Example

There are many investment instruments available today, depending on each individual’s risk profile. It turns out that investment activities have been developing since the time of Prophet Muhammad SAW.

The Prophet is not only known as a leader in the lives of Muslims but also as a successful figure in the business world. So, what is the investment strategy of Prophet Muhammad SAW?

Referring to research from The Rasulullah Way of Business (2021), the Prophet had capital in the form of trust and was eventually able to attract investors due to his honest and trustworthy nature.

Next, after running a business with funds from the investors, Prophet Muhammad shared the profits from his ventures. After that, he invested with the aim of generating passive income.

Livestock

One of the activities undertaken by Prophet Muhammad was animal husbandry. He continued his expertise from childhood into adulthood by owning dozens of camels. The Prophet is also known to have owned other animals, including horses, donkeys, cows, and sheep.

Land and Property

Not only livestock, Prophet Muhammad also invested in land and property. Musaffa’s report mentions that land leasing was done with Jewish people under a profit-sharing concept.

Prophet Muhammad also leased date palm orchards and land in Khaybar to Jewish people. They could live on that land and manage it, sharing the profits. Ultimately, this profit-sharing concept is known as mudharabah.

The Importance of Charity

One thing to remember from Prophet Muhammad’s investment activities is related to giving charity. Islam teaches that there is a right of others in human wealth, and by helping others, one gains extraordinary benefits.

Prophet Muhammad did not hoard his wealth. The Prophet was known as a figure who often gave charity, from money, clothing, to food.

In the end, if one wants to follow Prophet Muhammad in investing, choose property, land, and livestock. Do not forget to give charity as well.