How should your views on morality affect your investment strategy? David Bahnsen, Chief Investment Officer at The Bahnsen Group, argues in an Acton University presentation titled “Value Investing” that the question is a surprisingly complex one. He begins by outlining the purpose of investment consistent with its definition: to make a profit. Without growth, there is no investing. Similarly, there is no such thing as a risk free investment. Biblical investment is therefore rooted in prudent risk taking.
When designing investment portfolios, who determines what “socially responsible” means? There is no universal, objective determine, and Bahnsen argues either fundamentalists or environmentalists determine what it means. Fundamentalist portfolios might avoid investing in tobacco or alcohol, and environmentalist portfolios might stray from fossil fuels. (more…)