What is Biblically Responsible Investing?
Sometimes called Faith-Driven Investing or Values-based Investing, this investing approach ensures each company creates value in the world, not just extract value for shareholders. This includes evaluating what they sell, what they support, and how they make money.
Our investment philosophy is bigger than simply avoiding “sin stocks” and being limited to a small investment pool. The BRI approach views investments as opportunities to create positive impact in the world today and for generations to come. This alignment of faith and growth yields eternal returns
Money should do good for all.
But most investments only focus on returns. For people of faith, this shouldn't be enough. It should be possible to get returns that match—and possibly outperform—the market without sacrificing or compromising their beliefs. And without having to build a model on your own.
Our investment philosophy is bigger than simply avoiding “sin stocks” and being limited to a small investment pool. Our approach views investments as opportunities to create positive impact in the world today and for generations to come. This alignment of faith and growth yields eternal returns.
Doing the right thing pays off. Companies that adhere to high ethical standards tend to create comparable returns to other investment types, which means you do not have to choose between values and performance. To prioritize positive growth for investments, Biblically Responsible Investing focuses on companies capable of sustaining income and growth. Our focus is supporting businesses that create value, rather than extract it.
The Case for Biblically Responsible Investing
Fact 1: Everything is God's, including our wealth
The stewardship mindset flows directly from this truth. It's only once we wrap our arms around this concept that Biblical investing starts to become extremely compelling. God owns it all and we are merely stewards.
"The earth is the Lord's, and everything in it. The world and all its people belong to him." -Psalm 24:1
Fact 2: Stock investing equates to ownership
When we buy stocks, mutual funds, or ETFs, we're taking ownership stakes in businesses. Therefore, we are supporting and profiting from the activities of the businesses we own in our investment portfolios.
Fact 3: We're called to use our wealth for the glory of God
This verse from Proverbs and 1 Corinthians is straightforward: we're called to honor God with the wealth he has entrusted to our care.
"Honor the Lord with your wealth, with the firstfruits of all your crops." -Proverbs 3:9
So whether you eat or drink or whatever you do, do it all for the glory of God. 1 Corinthians 10:31
If we know that everything is God's and that stock investing constitutes ownership, then how do we honor God with our investments?
For one, we can avoid investing in companies that intentionally harm others for the sake of profit. In addition, through research and fundamental analysis we can embrace and invest in companies that seek to create value and have positive impact for all stakeholders. Finally, we can engage companies by developing relationships with management teams, proxy voting and advocacy and dialogue with companies on key issues.
This approach (avoid, embrace, engage) helps align our investment portfolio with scripture and gives us peace of mind that we are not profiting from the abuses of others.
Through our investments, when we own companies that profit from the weaknesses and addictions of others, we're taking advantage of the very same people God calls us to love. At the heart of it, Biblically Responsible Investing is about loving God and loving others.
“‘Love the Lord your God with all your heart, with all your soul and with all your mind.’ This is the first and greatest commandment. And the second is like it: ‘Love your neighbor as yourself.’” - Jesus
In summary, because we are called to honor God through the stewardship of our wealth, we should not be using God’s resources to bring harm to others, but rather seek out investments in companies that positively impact others. When we do so, we are investing to the glory of God, and investing itself becomes an act of worship.
What Does The Bible Say About Investing?
The Bible is full of wisdom when it comes to investing, below are some biblical investment principles found in God’s Word alongside Bible verses about investing, saving, and overall financial planning:
Saving / Investing: Proverbs 24:27 - Prepare you outside work, make it fit for yourself in the field, and afterward build your house.
Steady Growth of Capital: Proverbs 28:20 - A faithful man will abound with blessings, but he who hastens to be rich will not go unpunished.
Maintain A Long Time Horizon: Luke 14:28 - For which of you, intending to build a tower, does not sit down first and count the cost, whether he has enough to finish it.
Use Time as a Tool: Proverbs 6:6-8 - Go to the ant, you sluggard! Consider her ways and be wise, Which, having no captain, Overseer or ruler, Provides her supplies in the summer, And gathers her food in the harvest.
Understand that Cycles are Inevitable: 2 Peter 3:4b - For since the fathers fell asleep, all things continue as they were from the beginning of creation.
Have a Diversified Investment Strategy: Ecclesiastes 11:1-2 - Cast your bread upon the waters, for you will find it after many days. Give a serving to seven, and also to eight, For you do not know what evil will be on the earth.
Seek Wise Counsel: Proverbs 19:20-21 - Listen to counsel and receive instruction, That you may be wise in your latter days. There are many plans in a man’s heart, Nevertheless the Lord’s counsel—that will stand.
Avoid High Leverage: Proverbs 22:7 - The rich rules over the poor, And the borrower is servant to the lender.
Monitor Anxiety: Philippians 4:6-7 - Be anxious for nothing, but in everything by prayer and supplication, with thanksgiving, let your requests be made known to God; and the peace of God, which surpasses all understanding, will guard your hearts and minds through Christ Jesus.
Invest in companies that operate according to biblical values: Proverbs 15:16 - Better is a little with the fear of the Lord, Than great treasure with trouble.
