When you buy stock in a company, you become a part owner. That’s why you may receive an invitation to the annual meeting or a ballot to elect the board of directors.
It can feel empowering. In reality, though, an individual shareholder has little influence over how a public company makes money. The most important decision is whether to own the stock in the first place, because that choice puts your money behind the company’s business.
As part of the onboarding packet at cfc Advisers, clients are asked a series of “Yes/No” questions on “Do You Know Where Your Money Is Invested?’ The 25 questions help new clients articulate what values are important to them, so we can help better align your investment strategies with companies that support those beliefs.
Stewardship, Not Just Returns
When you embrace the idea that you are a steward of the resources God has placed in your care, your outlook on money can shift.
That next question may become, “What does this support?” rather than, “What will this earn?” Returns still matter. Your investments support retirement, family needs, and your charitable groups. However, stewardship adds a critical second test: Do your investments reflect the convictions you live by?
Aligning Values & Investing
Investors screen companies for many reasons. For faith-based investors, that might mean avoiding companies involved in abortion, pornography, gambling, alcohol, or tobacco. Others screen for environmental, social, or governance concerns. Still, others simply want to avoid businesses that conflict with personal conviction.
Screening can also work in reverse. While some look to exclude some companies, others want to include only businesses that reflect their values. However, it’s important to keep in mind that screening can narrow your investment choices, so understanding how companies position themselves is an important first step.
Getting Started
Proverbs 11:14 says, “In the multitude of counselors there is safety.” A single screen can eliminate an entire sector, yet two companies in the same industry may operate under very different standards. A closer review may show you don’t need to discard a whole sector.
Asking questions is the most important first step in learning more about how your money is invested. We can help you with the answers.
