Comments on: Faith Based Investing | Thumbs Up or Thumbs Down?

By: Craig

Craig — Wed, 28 Jul 2010 18:55:02 +0000

@Jay
Thanks so much for your comment and your perspective. I think it helps give a good, fair, and balanced response to the article. I like how you point out that while there are grey issues some companies are clearly in direct opposition of God’s Word.

By: Jay

Jay — Fri, 23 Jul 2010 18:17:13 +0000

My question to any investor is: do you think God cares about the amount of the profit or the source of the profit? God cares about us being faithful in the small things. Is faith-based investing practical? After over 5 years of research, I am fully convinced you can have your faith and performance too. It does take time and a commitment to find investments that are honoring to the Lord.

By avoiding the most morally objectionable companies you are saying to God yes I care about where I am investing your money. Is the process perfect? No, but I believe God will reward those who seek to be faithful in all areas of life. This isn’t the motivation (financial reward) but rather through obedience we grow closer to the true character of God. No person or company is perfect like Jesus, but there certainly are companies that are in direct opposition of God’s Word. I start by avoiding those and then finding companies I can be “proud to own”!

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By: Craig

Craig — Fri, 04 Jun 2010 03:54:53 +0000

@Khaleef and Joe
Khaleef thanks for jumping in and answering the questions Joe asked.
On question 1 – I have no idea . Either way you do profit when a company profits.
Your second question is why faith based investing is hard. You can spend so much energy trying to avoid a speck of dirt and then turn around and buy milk at a store that profits by selling porn. I prefer to devote my energy in making a positive impact on the kingdom rather than looking under every moral rock. That said, I do avoid purchases that clearly seem immoral. However, when investing in mutual funds it is impossible to completely avoid ‘sin stocks’.

By: Khaleef @ KNS Financial

Khaleef @ KNS Financial — Thu, 03 Jun 2010 20:52:11 +0000

@ Joe, to answer your first question…Unless you are purchasing stock in an IPO (Initial Public Offering) or a Secondary Offering, you are purchasing from another individual and NOT directly from the company. However, from that point forward you are now a part owner of that company and will be participating in their profits and losses. So, if you have a moral objection to alcohol for example, and you buy shares of Anheuser Busch, then you are profiting from the very thing that you have an objection to. So that’s the reason why some people choose to avoid certain stocks even if their actual dollars will not go to the company directly during the initial purchase.

On your second point, I agree that it can be extremely difficult and you can spend all of your time and energy on avoiding certain brands, just to find out that the parent company produces 10 other things that you buy. I think at that point, everyone must rely on Godly counsel, prayer, and their conscience (when properly under the direct influence of the Holy Spirit and informed by God’s word).

By: Joe Plemon

Joe Plemon — Thu, 03 Jun 2010 20:25:24 +0000

Here is my question: when I buy stock in any company, does my money go to that company or to another investor who sold his stock at the same price? I am admittedly naive about how the stock market works (my question probably proves that), but buying and selling stock could be akin to someone selling me their used Chevrolet…none of the money goes to General Motors; it all goes to the seller.

Not wishing to sound cynical, but do those who use faith based investing also refrain from buying groceries where alcohol is sold and gasoline where cigarettes are sold or pharmaceuticals where birth control products are sold? I guess I am a bit cynical, but in this world, it is difficult to NOT support some business who sell products we don’t agree with.

By: Craig

Craig — Thu, 27 May 2010 22:17:02 +0000

@Mark. I didn’t think that was a rant. I thought it was very helpful. When you dig deeply into most companies there will ultimately be these type of deep ethical issues. You use the GE example. Then there is the question about investing in companies like grocery stores that sell pornography. Thought they are not directly related with the industry they profit from the industry. At the very least we could all agree this is a very complicated issue.
Thanks for some fantastic insights.

By: Craig

Craig — Thu, 27 May 2010 22:11:50 +0000

@Darren
I hear a lot of my own opinions in your comment. This is a difficult issues with validity on both sides.

By: Craig

Craig — Thu, 27 May 2010 22:10:18 +0000

@Mark
Thanks for sharing your opinion. I think you have some very valid points. In particular I do think sometimes we do ‘give up’ when doing something would be better than doing nothing.

By: Darren

Darren — Thu, 27 May 2010 19:33:22 +0000

I have mixed opinions about this as well. As a follower of Christ, I strive to have my whole life glorify God, including my finances.

All the different faith-based options may give the different people what they want, but it may also overwhelm people who may not fall into a denomination. And at this point, I’m not so sure that it’s possible to agree 100% in what any fund invests in. Furthermore, you’re still placing trust in a fund manager to invest “the right way.”

If you were to avoid certain stocks, you’d have to invest individually, which takes more time and costs a lot more. So there are many facets to this issue about faith-based investing that leaves me unable to come to a definitive conclusion as to whether I’m for it or not.

In my opinion, I still think we can glorify God in many other ways.