Home
/
RELIGION & LIBERTY ONLINE
/
Value investing: Restoring ownership and ethics to investment
Value investing: Restoring ownership and ethics to investment
Nov 13, 2024 3:20 AM

In today’s global economy, it can be easy to feel like robotic worker bees or petty consumer fleas in a big, blurry economic order. The feeling is understandable. Value creation, even at its largest margins, is increasingly difficult to spot.

That’s not necessarily a bad thing, of course. Size, scale, and efficiency all have significant perks. But while we should be wary of the modern to temptation to blindly castigate “big business” only because of its bigness, we should also be mindful that consolidation and centralization do, e with their own assortment of risks and blind spots.

Which brings us to the more basic question: As our economy continues to grow in size plexity and efficiency, what might we lose if we’re not paying attention? I’ve outlined some of those risks as it relates to the effects of economic modernity on trade and consumerism, family andchild-rearing, and physical labor, but the areas of impact are endless.

In a new video from the Denver Institute for Faith and Work, we see how the same pitfalls and tendencies can occur when es to investment and ownership. And one of the ways we might respond:

Mutual funds are one the most popular ways that people choose to invest, yet they offer little visibility into what, exactly, the funds are supporting. What do our investments actually purchase? What kind of ownership are buyers stepping into?

For many, those questions warrant a shrug, at best. For Eventide, a Boston-based asset management firm, those are questions worth answering, requiring inputs and information that go well beyond balance sheets and surface-level measurements of financial health.

“As an investor in mutual funds, not only do you not have any idea how panies you own are being operated, you don’t even know what you own,” says Eventide’s Jason Myhre. “Investing’s original and most basic purpose is about supplying capital to create businesses. But today investing has really e divorced from that ownership idea, and people are really seeking to profit from the market itself as an abstract entity.”

This isn’t to say that mutual funds are “bad.” They have a productive and fruitful place in financial stewardship. But again, in a world where this represents the status quo of everyday investment, what might we lose if we’re not attentive to the underlying distinctions? Eventide seeks to restore that care and concern among investors, offering an opportunity to regain an ownership mentality of investment and, more importantly, know es with it.

“The thesis is that investing is ownership,” says Finny Kuruvilla, pany’s CIO. “You’re connected to panies via your fund manager. So you’ll be a .001% owner of pany, and ownership should invite us to consider more carefully, ‘Well, what are the things do we own?’ You then have some ethical degree of involvement with the activities of pany.”

To assess pany, Eventide uses what they call a “Business 360” approach, grading how the business engages with a wide range of stakeholders, including customers, employees, supply chain participants, munities, the overall environment, and broader society. Some might be tempted to call this a varied approach to “social entrepreneurship,” but for the folks at Eventide, they’d prefer that we avoid mon dichotomization between “social good” and “profitability.”

“When we talk about investing, in our minds, we tend to dichotomize what’s smart and what’s right,” says Myhre. “But for Biblical thinkers…and I think the call of any believer today, is to not see those as separable concepts. So when we talk about investing and this idea of value creation, it’s not ‘profit takes this path’ and then ‘social good takes this other path’ and we’re trying to hold them together with some kind of a linkage or make some kind of a trade-off decision. We believe that what is right is also what is smart.”

In an economic order that is increasingly big and blurry and difficult to navigate, and amid a culture that prefers investment via routine deposits/withdrawals, Eventide reminds us that we can still prioritize intentional ownership in the information age, using human wisdom, human conscience, and spiritual discernment as stewards in service of the Supreme Investor.

“Conscience is there,” write Gerard Berghoef and Lester DeKoster in their book, Faithful in All God’s House. “We need not, and could not, create it. But how exciting a challenge to enlist its voice in our efforts to serve the Christ through obedience to the divine Law in the form of good stewardship.”

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
Open Source Software and Market Competition
The traditional Drupal logo Last week I attended Drupalcon Chicago 2011. Acton Institute’s website runs the Content Management System called Drupal. It is a highly customizable website publishing tool that powers around 1.7% of the Internet. Drupal scales: you can use it for a personal website, but very large outfits use Drupal including the White House and Grammy. As you may know, open source software is free. Anyone can download the package and begin using it or view the internal...
Religion & Liberty: An Interview with Thomas C. Oden
Religion & Liberty’s winter issue featuring an interview with patristics scholar Thomas C. Oden is now available online. Oden, who is a Methodist, recalls for us the great quote by Methodist founder John Wesley on the Church Fathers: “The Fathers are the most mentators on Scripture, for they were nearest the fountain and were eminently endued with that Spirit by whom all Scripture was given.” Oden reminds us of the relevancy of patristics today, he says “You can hardly find...
Surging Food Prices
As a follow up to recent blog posts (here, here, and here) where rising food prices have been discussed, the most current numbers have been released. What many of us already know from visits to the grocery store is that food prices have increased dramatically. Food prices rose by 3.9 percent in the month of February, making this the largest increase since November of 1974. An article from the Associated Press explains the rise in food prices while also showing...
Can the U.S. learn from Europe’s green mistakes?
Kenneth P. Green, of the American Enterprise Institute (AEI), recently examined green energy in Europe in an essay titled, “The Myth of Green Energy Jobs: The European Experience.” Green thoroughly analyzes the green industry in Europe while seeking to discover the reasons behind its current downward spiral. As readers discover, this is largely due to the green industry being unsustainable while heavily relying on government intervention and subsidies. Green uses the failing green industry in Europe to forewarn the United...
Five Things
It’s been awhile since I’ve done a summary post of this kind, but there’s been a fair number of things of interest over the last week or so that are worthy of a quick highlight. So here’s an edition of the aptly named “Five Things” (HT): Carl Trueman reflects on his visit to the Acton Institute. Concerned about how his Republocrat credentials e across, Trueman says, “Despite my fears that I might be heavily outgunned at Acton, the seminar actually...
Japan Quake, Military Aid, and Shane Claiborne
Waking up to the devastation today in Japan was heartbreaking. Malcolm Foster, reporting for the AP, notes: A ferocious tsunami unleashed by Japan’s biggest recorded earthquake slammed into its eastern coast Friday, killing hundreds of people as it carried away ships, cars and homes, and triggered widespread fires that burned out of control. Reporting for Reuters, Patricia Zengerle and David Morgan’s headline reads: “U.S. readies relief for quake-hit ally Japan.” From their article: The Defense Department was preparing American forces...
Social Justice and the ‘Third California’
In his New Geographer column on Forbes, Joel Kotkin looks at the “profound gap between the cities where people are moving to and the cities that hold all the political power” in California. Those living in the growing “Third California” — the state’s interior region — are increasingly shut out by political elites in San Francisco and other coastal cities. Kotkin observes that the “progressives” of the coast are “fundamentally anti-growth, less concerned with promoting broad-based economic growth — despite...
Green Patriarch: No Nukes
With the terrible human toll from Japan’s earthquake and tsunami catastrophe only now prehended, and the grave follow on crisis at the country’s nuclear power plants unfolding by the hour, the anti-nuclear power crowd has already begun issuing statements such as the one Greenpeace put out saying that “nuclear power cannot ever be safe.” Predictably, reports Geoffrey Lean in the Telegraph, “battle lines” are being drawn: On Saturday, some 50,000 anti-nuclear protesters formed a 27-mile human chain from Germany’s Neckarwestheim...
Samuel Gregg: Business vs. the Market
In a new essay for Public Discourse, Acton Research Director Samuel Gregg explains why we shouldn’t only focus on public sector unions as examples of organizations that seek government power and taxpayer dollars to advance their ends. “A considerable portion of the munity is equally culpable,” Gregg writes. Excerpt: The attractions of business-government collusion are enhanced when the state’s involvement in the economy grows. This is partly a question of incentives. The larger the scope of government economic intervention, the...
A Suggestion for Rounding Out ‘A Call for Intergenerational Justice’
I’d like to thank Gideon Strauss of the Center for Public Justice and Jordan Ballor of the Acton Institute for their gracious and thoughtful contributions to the discussion of “A Call for Intergenerational Justice” at last night’s Open Mic Night in Grand Rapids. It was an excellent example of the kind of spirited and good natured dialogue we need in confronting the problems of poverty and the national debt. Earlier this week I pointed out that there was indeed a...
Related Classification
Copyright 2023-2024 - www.mreligion.com All Rights Reserved