Investing With Integrity - Your Questions Answered
In this episode, Jeff addresses questions about biblically responsible investing (BRI). He defines BRI as investing aimed at honoring and magnifying God and explains that it involves filtering out companies involved in immoral activities and supporting companies that contribute to human well-being. Talarico emphasizes the importance of BRI for believers, as it aligns with the teachings of Jesus and allows for a holistic lifestyle where faith permeates every aspect of existence. He also discusses the performance of BRI, the difference between owning a company and owning a product, and the misconception that BRI encourages discrimination.
Takeaways
Biblically responsible investing (BRI) is investing aimed at honoring and magnifying God by filtering out companies involved in immoral activities and supporting companies that contribute to human well-being.
BRI is important for believers as it aligns with the teachings of Jesus and allows for a holistic lifestyle where faith permeates every aspect of existence.
Research suggests that adopting values-based investment approaches like BRI can positively influence investment performance.
Owning a company as a shareholder comes with responsibility for the company's actions, while owning a product does not.
BRI does not encourage discrimination, but rather seeks to avoid supporting companies that engage in activism and disregard the beliefs of employees and shareholders.
Transcript
Welcome to the Investing with Integrity podcast. My name is Jeff Talarico I am your host. Today's show is going to be a little bit different since since launching this podcast in October, I have received several questions on specific topics about BRI. More of you wanting to know more about it, why we do what we do, how we do what we do, what are the reasons behind all of this. So today I want to take a few minutes and I want to address some of these questions.
I also will give you my email address during this presentation. It'll also be in the show notes. I would encourage you to email me any questions that you have about BRI. That's something that we can put on some other of our shows as we go through this process together. So thanks for being here with us today. I hope you've enjoyed the shows up to this point and I hope you continue to enjoy them as well. But let's jump right in it today and let's talk about our first question. What is BRI?
Now, BRI stands for biblically responsible investing and it falls under the umbrella of values based investing. Now, BRI, it takes into account the broader implications of a company or an investment fund beyond its potential for profit. What I mean by that is for years, the assumption has been that BRI yields lower returns compared to conventional investments, but...
this isn't just not true and the evidence suggests otherwise and we'll delve into that later on in this podcast. But to define biblically responsible investing, I define it as investing aimed at honoring and magnifying God as a fundamental act of worship. Let me say that again, my definition of biblically responsible investing is investing aimed at honoring
Corinthians: Jeff Talarico (:for the glory of God that would encompass investing. So how can we align our investments with God's approval? Biblically responsible investing strategies undertake two primary actions. First, we filter out companies or funds that are involved in activities that are deemed immoral according to Christian principles, such as those profiting from pornography or...
abortion, for instance. Additionally, we abstain from investments that are associated with human rights violations or substantial environmental harm. Secondly, BRI emphasizes supporting companies whose endeavors contribute to the human wellbeing, to the flourishing of society, if you will. This would be companies that...
facilitate the production of essential goods or delivering health and educational services and developing infrastructure like roads and networks, for instance, like phone and telephone, those kinds of things. You see, these types of companies are the backbone of the economy. They create jobs and they play a crucial role in stewarding the environment. With that said, working with a certified kingdom advisor like myself, we can assist in researching and selecting investments that are in line with your core values. The second question I want to address today is why is biblically responsible investing important? Well, for the secular world, it's not, but for believers, it should be. This is by far one of my most favorite questions. You see,
If the teachings that are found in the gospels, Jesus consistently emphasized the importance of exposing darkness to the light. If we look at Luke 2, it says, nothing is covered up that will not be revealed or hidden that will not be known. So as followers of Christ, it's on us to pursue truth as fervently as he did.
Jeff Talarico (:You see, once truth is uncovered, it becomes our duty to respond accordingly. Every investment represents a form of ownership. Consider stocks, for instance. By purchasing shares in a company, you acquire partial ownership of that company and you boost the stock's market value. As others invest in the same stock, it's
its value continues to appreciate, which leads to a mutual benefit. You get to sell it for higher than you bought it, creating a profit. So therefore, investing in a company that thrives on what the Bible identifies as unjust gain, not only contributes to, but also benefits from the success of morally questionable enterprises. Ultimately, Biblically responsible investing can guide you toward a holistic lifestyle where your faith permeates every aspect of your existence. Moreover, BRI extends beyond safeguarding personal spiritual wellbeing. It possesses the potential to affect a broader societal change. You see, money possesses influence,
and investor pressure can spur transformation.
Jeff Talarico (:If a significant number of individuals advocate for biblically aligned practices through their purchasing power, the corporate landscape could evolve to reflect principles akin to those of the kingdom of God.
envision a marketplace driven by communal welfare and human flourishing rather than self -serving.
Indeed, this aligns with the vision imparted by Jesus himself, your kingdom come, your will be done on earth as it is in heaven.
The next question I got asked was, do you give up performance to invest with BRI? It's another great question to address today, so let's get to it. In a nutshell, no, certainly not. You see, upholding ethical values and achieving favorable returns are not contradictory aims. While no investment strategy can promise guaranteed profitability,
research conducted by institutions like the Biola University, Oxford University, and the Biblically Responsible Investing Institute and others suggest that adopting values -based investment approaches such as Biblically Responsible Investing has positively influenced investment performance.
Jeff Talarico (:But what if it didn't?
I would suggest as believers, we look to scripture and see what God's word says. In Proverbs 16, 8, it says, better is a little with righteousness than great revenues with injustice.
You see, therefore, as followers of Christ, if confronted with the choice between higher returns derived from unethical investments or lower returns that were generated from investments that were aligned with God's principles, we should un-hesitantly and joyfully opt in for the path that glorifies God.
regardless of the financial outcome. Let that one sink in for a minute.
no matter what the financial outcome, if we are investing the way our master wants us to invest, we're doing good.
Jeff Talarico (:The next question, how does owning the company differ from owning the product? Now there are some that says owning a product that is made by a company that is violating biblical principles is just as bad as owning the stock itself. Now I don't agree with that take and here's why. You see, when I purchase something, say an iPhone or I shop on Amazon, two companies that...
I can't get to pass a screen, both Apple and Amazon. Yes, the company is profiting by what I purchase. I however, am not profiting from the company. Let me put it another way. I am personally responsible for how I use the products I buy. You see, I could use my iPhone for reading the Bible. Or I...could use it, I guess, to watch pornography.
See the product itself doesn't do either. I have to make the choice. My actions are strictly based on my purchase and what I do with what I bought. I have no say in the company and what they do, nor do I make a profit from them. But as a shareholder, you are.
actively involved in the profits and all other decisions that are made by the company because you have ownership in it. The extent of your ownership, whether large or small, meaning one share or a thousand shares, doesn't matter. You remain a part owner of the company. You have voting rights. When you buy a product,
Jeff Talarico (:you have no voting rights. So if the company that you have a stake in engages in unethical practices like involvement in industries like abortion or pornography, or if it channels corporate profits towards supporting morally objectionable causes like funding Planned Parenthood, then you bear the responsibility for those actions.
I believe in God's eyes, you own it. It's your company and you are implicated in its conduct.
That leads me to the next question I received. Don't you think screening out things like LGBTQ encourages discrimination?
Jeff Talarico (:Short answer? No, not at all. You see, those who screen for morals and values would love to be able to never have to screen again. We don't want to see any companies discriminate against their employees in any way, shape or form, whether they're in the LGBTQ community or they believe in traditional biblical marriage as defined by the Bible.
one man, one woman. Where the problem lies is when companies choose to engage in the activism side of these hot topics causing further division, usually caused by the personal beliefs of a few of the board members or the management of the company. You see, they totally disregard the other employees and the shareholders that don't agree with them.
Look, I am all for freedom of speech and the freedom to choose. But when a company that is publicly traded starts to support one side or the other, that's where the issues come from. Publicly traded companies should just remain neutral. Now, if you think the investment pool is limited when we screen out companies, you're wrong.
Again, based on research that Inspire did, over 88 % of the publicly traded companies pass a BRI screen. Now with that said, according to the Biblically Responsible Investing Institute, only three out of the 30 stocks in the Dow Jones have no violations. So these big mega cap companies seem to be the ones that we need to avoid.
There are a lot of things that we personally can do in our lives to support biblically responsible investing. And if this is something that you are greatly and truly interested in, I suggest talking to your financial advisor, asking them the questions, what are my choices? What are my options? If you have a loved one that passed away from cancer and you don't wanna support companies that produce cigarettes, that's your choice.
Jeff Talarico (:ask, does any of my portfolio not align with my morals and values? The whole purpose of this podcast is for education and I'll talk about that again in just a minute, but we want to be able to share the biblical truth of what our Lord and Savior wants us to do. I don't know if you realize it or not, but money was talked about more by Jesus than anything else in the Bible, so it must hold some level of importance for him.
Jeff Talarico (:Well, I hope today's show brought a little more light on the subject of BRI, what it is and why we do it. As I mentioned earlier, if you have questions, feel free to email them to jefft at lasallest .com. That's J -E -F -F -T at L -A -S -A -L -L -E -S-T.com
put podcast questions in the subject line and I will do my best to answer them on future shows. Also, if there's some companies or individuals that you would like to hear from, drop me a line with their name as well. I'd love to have them on as a guest. Listen, it all comes down to the choices we make.
I recently spoke at a conference with other advisors and three people came up to me afterwards and they said that they never knew something like this existed. And they're in the business. So I do this so you, the consumers know that you have a choice on how to invest what God has entrusted you with. My goal is to continue to educate my listeners.
on how investing for the kingdom is far greater than investing for the world. We're teaching you how to store up for heaven where moth and rust cannot destroy is far greater than building earthly wealth that is fleeting. We're sharing stories of companies that are doing business to glorify God in all that they do.
is greater than simply seeking to make a profit.
Jeff Talarico (:And as my tagline says, sharing ways for you to have wisdom over worth, morals over money, principles over profit and integrity over it all. Thanks for listening to today's show. Until next time, God bless.
