Integrating your morals, values, and/or faith into your investment portfolio
Faith Based Investing is integrating your morals, values, and/or faith into you investment portfolio by screening out companies who generate revenue and profit from products and services that don’t match your morals, values, and/or faith.
Example of this Approach
Based on your “faith” or morals and values, you may believe that the use of pornography is wrong. We agree. And if you have that belief, you wouldn’t be an owner of a business that sells magazines, or movies of such. However, without properly screening out companies that generate revenue from this industry, you may be an investor (albeit that you were not aware) and earn profits from the “pornography” industry.
We all want to profit from our investments, but if it’s against our beliefs in word and deed, then you may also want eliminate it from your investments too. By screening out companies who manufacture pornography, produce movies with nudity, and other vices that are against your beliefs, you will have a portfolio that better matches your beliefs, your morals, and your faith.
Invest in Other Companies
With faith-based investing, you choose to invest in companies other than those who are involved in practices that go against your faith and beliefs.
Some examples of businesses where you may not wish to invest your money include those involved in: gambling, alcohol, tobacco, abortion, anti-family practices, defense & war, among others.
Casinos, horse racing tracks, and/or companies that manufacture lottery machines.
Abortion clinics, embryonic stem cell research laboratories, abortion pill drug manufacturers.
Defense & War
Defense contracting companies, arms and munitions manufacturers.
You are a shareholder and owner of what you invest in.
SHAREHOLDERS ARE OWNERS OF THE BUSINESS
When you invest money into a company, you are a shareholder or owner. Would you be an owner of a “pornography” store in your neighborhood? If not, you probably wouldn’t want to be an owner of a business (stock shareholder) of a company that profits from the industry.
Will You Earn Less?
For some investors, they are looking for the best return on their money, and that’s understandable. We want great returns too. However, some investors ask us to implement a strategy that strives for great returns, as we eliminate investments into companies that don’t match their moral compass. Over the years, many studies to compare the different strategies produced mixed results. However, the bottom line is having a portfolio that is customized to you, AND your faith, your morals, your values.
The return may be lower than if the adviser made decisions based solely on investment considerations.
Start On The Path Today
Begin your journey of faith-based investing with us today and invest in what matters to you.