Investing is a behavior that can help an individual’s finances remain stable. Interestingly, it is also a practice taught by religion and implemented by the Prophet Muhammad. The Prophet was not only a figure of faith but also a businessman.
However, the Prophet was not the type of investor who directly invested funds; instead, he attracted financiers to run his business.
According to the research in The Rasulullah Way of Business (2021), Prophet Muhammad possessed the capital of trust, which allowed him to secure investors due to his honesty and integrity.
Subsequently, after managing the business using pooled funds from these financiers, the Prophet shared the profits from the business operations. He then invested with the aim of generating passive income.
One of his ventures included livestock farming. The Prophet Muhammad continued the skills he had acquired since childhood into adulthood, owning dozens of camels.
It is also known that the Prophet owned other animals, such as horses, donkeys, cattle, and sheep.
In addition to livestock farming, Prophet Muhammad invested in land and real estate. The Musaffa report mentions that land leases were conducted with Jewish people on a profit-sharing basis.
Prophet Muhammad also leased palm groves and land in Khaybar to the Jewish community. They were allowed to live on the land, manage it, and share the profits. This profit-sharing concept is known as mudharabah.
One important aspect to remember about the Prophet Muhammad’s investments is related to charity. Islam teaches that others have a right to a portion of one’s wealth, and by helping others, one gains tremendous benefits.
Prophet Muhammad did not hoard his wealth. He was known for his frequent acts of charity, giving away money, clothing, and food.
Therefore, if one wishes to follow the Prophet Muhammad in investing, it is advisable to invest in property, land, and livestock. Also, do not forget the importance of charity.
