Discover God’s Story for Investing is an ongoing series that examines faithful investing from the biblical story in coordination with the Eventide Center for Faith & Investment.
At the highest level, investing is defined as buying an asset in the hope that it will appreciate in value or generate income. In the world of personal finance, many people invest for long-term financial goals, such as paying for college, buying a house, or saving for retirement.
However, for Christians, the phrase “hope that it will appreciate in value or generate income” is a bit more complicated.
“Most of us start out with the world’s story for investing,” according to the Eventide Center for Faith & Investing. “And we have to discover God’s story for investing.”
The world’s story for investing is “buy low and sell high.” Investments are evaluated based on pursuing maximum risk-adjusted returns. “In the world’s story, it really doesn’t matter how the returns are generated, only that the returns are generated,” concluded the Eventide Center for Faith & Investment.
“Do not conform to the pattern of this world, but be transformed by the renewing of your mind. Then you will be able to test and approve what God’s will is—His good, pleasing and perfect will.” Romans 12:2
God’s story for investing asks, “What’s the purpose for investing knowing that every penny and every possession isn’t ours–it’s his?”
The Eventide Center for Faith & Investment explains that there are both “good” and “bad” kinds of profits.
Good Profit: This is a well-gotten gain. It’s a profit earned by producing a product or providing a service for the needs of others.
Bad Profit: This is an ill-gotten gain that is made at the harm or expense of others.
As Christians, we honor Him by asking difficult questions about how a company operates and what type of business practices it uses. We honor Him by learning more before working with a company, or service professional or pursuing an investment.
In his popular book Diamond of Life: The Five P’s of Success and Significance, author Mick Owens talks about the investing process and stresses that careful consideration must be given to your goals, time horizon and risk tolerance as well as your values. He asks, “Would you prefer an investment strategy that didn’t invest in companies that support abortions, pornography and other things that you might consider objectionable?”
Creating an investment strategy can be a complicated process, but it can be simplified by following certain guiding principles. Our values can help us transform our approach toward investing.
