Icebergs
I was recently reflecting on “The Iceberg Analogy”. It’s pretty popular, but in case you’re unfamiliar the premise is that only ten percent of an iceberg is actually above the surface of the water. The other ninety percent is unseen as it’s below the surface. I use this as a visual picture when meeting with clients to discuss an important financial planning concept. Only ten percent of what we do involves financial planning and investing. The other ninety percent is the “why” that drives all of our decisions. Many mutual fund, ETF providers, and the advisors that represent them to clients have become stuck on that ten percent - the actual negative screening process that goes into the implementation of Faith-Based Investing. In doing so, many neglect the other ninety percent that digs deeper into the heart of the issue - the “why.”
On my way home this week, I’ve been listening to a fun, and insightful book by Bob Goff called Love Does. In the book, Goff talks about his experience with a childhood friend. This friend was a Christian and was living his life in a way that challenged many preconceived notions that Goff had about what Christians were like. The majority of his experiences were very different than what he encountered in this friend. In one particular part, Bob wrote, “ Most Christians I had met seemed to have more opinions about who or what they were against than what they were for.”
A recent experience at a national industry conference echoed the sentiments in the quote above. During the conference, there were many conversations about which companies are doing Faith-Based Investing the right way (and those doing it the wrong way) as wells as talks about the need to educate the investing public about Faith-based Investing. But I prefer to approach this all a different way. Instead of another finger-wagging session about all of the problems in the Faith-Based Investing industry, why don’t we spend a few minutes discussing what we are for rather than what we are against?
This movement is about companies that are adding value to society. There’s a fund company in this space that does a great job of messaging in this area. However, because of compliance regulations, I can’t tell you who they are… don’t you love this ever-increasingly-regulated world that we live in?! But I digress…
At its core, Faith-Based Investing is about diligently examining the different areas that a company functions in from day to day. It asks questions about how they are taking care of their employees - how they interact with their vendors - what positive or negative impact the company has on the environment - what type of corporate citizen they are in their immediate community as well as society at large. These types of questions go above and beyond the traditional research done to when identifying potential companies for investment.
I get excited when we're able to build portfolios with companies that add value to society! I know that the Faith-Based Investing movement opens doors for investors to have the ability to see that the money they are investing can have a positive impact on the world around them! I’m sold on this movement because it enables investors to have ownership in companies that align with their personal values and worldview. I’m thankful for the opportunity to live out my faith by being a good steward of the assets that have been graciously entrusted to me.
The “Why” is the driving force behind this movement! So now for the call to action… Take your first step! We are here and ready to assist by completing an impact audit on your portfolio. This allows you to truly know what you own and the value it is bringing to the world.
As always I leave you with this question: What’s in your portfolio?