Posts tagged with: investment

Can we live the good life in the world of finance and banking? Acton’s research director, Samuel Gregg, explores that question in his latest book For God and Profit: How Banking and Finance Can Serve the Common Good. He was recently interviewed by the Social Trends Institute in order to discuss the motivation behind writing the book as well as expanding on the theme of his book.

Some of the highlights:

What’s the biggest challenge facing Christians and other people of good will seeking to shape the world of finance and banking?

Perhaps the most important is that we need to learn how modern banking and finance functions before they make suggestions or critiques. There’s no point criticizing something like short-selling unless you understand, first, what short-selling is, and second, the ways in which it actually serves as an early warning system for significant problems in a business or even an economy. In fact, short-sellers are invariably light-years ahead of the regulators when it comes to such matters.


chobani-ceoAs politicians continue to decry the supposed “greed” of well-paid investors, business leaders, and entrepreneurs — promoting a variety of reforms that seek to mandate minimums or cap executive pay — one company is demonstrating the value of economic freedom and market diversity.

Chobani, a privately owned greek yogurt manufacturer, recently announced it will be giving a 10% ownership stake to its roughly 2,000 full-time workers, a move that could result in hundreds of thousands, if not millions, of dollars for some employees.

According to the New York Times:

Hamdi Ulukaya, the Turkish immigrant who founded Chobani in 2005, told workers at the company’s plant here in upstate New York that he would be giving them shares worth up to 10 percent of the company when it goes public or is sold.

The goal, he said, is to pass along the wealth they have helped build in the decade since the company started. Chobani is now widely considered to be worth several billion dollars.


money-abstractWhen it comes to economic stewardship, Christians are called to a frame of mind distinct from the world around us.

Though we, like anyone, will sow and bear fruit, ours is an approach driven less by ownership than by partnership, a collaboration with a source of provision before and beyond ourselves. This alters how we create, manage, and invest as individuals. But it mustn’t end there, transforming our churches, businesses, and institutions, from the bottom up and down again.

In some helpful reflections from the inner workings of his own organization, Chris Horst, vice president of development for HOPE International (a Christian microfinance non-profit), opens up about the types of questions they wrestle with as a non-profit. Through it, he demonstrates the type of attentiveness we were meant to wield across all spheres of society.

tim-keller-head-shot-2011The Christian life is one filled with risk, driven by active faith in an active God whose ways are higher than our own. In all that we put our hands to, God calls us to turn away from the supposed predictability of our own plans and designs and rely entirely on Him.

Such an orientation transforms each area of our lives, from family and friends to politics to church life and beyond. But for those involved in entrepreneurship and business, the stakes feel particularly high, and amid the rise of modernity and overwhelming economic prosperity, the temptation to rely on our own devices is more alluring than ever before.

Christians are good at talking about “abandoning all” for the sake of the Gospel, to be sure, but what does this look like in day-to-day life? The rich young ruler made a risk calculation when asked to give all of his wealth to the poor, and based on that output, he failed. What similar calculations do we encounter as God prompts our stewardship, whether it means donating to a particular charity or investing in a new idea or enterprise? (more…)

pilgrim, property rightsEach Thanksgiving brings with it another opportunity to pause, meditate, and express our gratitude for the great blessings in life. As one who recently welcomed a new baby boy to my family, it seems particularly evident this season that the greatest blessings are not, after all, material.

Yet material need is a persistent obstacle, the dynamics of which wield significant influence over the entirety of our lives, from the formative effects of our daily work to the time, energy, and resources we pour out out in the service of others. Thus, it should be no surprise that Thanksgiving is often accompanied with reflections on the material: how we’ve been blessed with food in our bellies, shelter from the cold, a means to provide, and so on.

In the spirit of such reflections, released a nice, albeit excessively cheeky, video aimed at prodding our gratitude beyond the bread on the table and toward one of the systemic features that helps bring it from the field to the baker to the boca: property rights. (more…)

Faithful in All God's House

I recently shared a lengthy excerpt from Faithful in All God’s House, highlighting the investment-return motif that appears throughout the Bible. “All of God’s gifts to mankind are as a divine investment on which the investor expects full return,” write Berghoef and DeKoster.

Several readers pushed back on the analogy, interpreting it to mean that God rolls out his divine plan according to earthbound assumptions, as if “prudent investment” means being beholden to the outputs of a narrow, materialistic cost-benefit analysis.

It’s troubling on many levels that “prudent investment” has come to reckon imaginations of something so imprudent for so many. We humans, the “agents of return,” are called to live within a framework much more varied, complex, and mysterious than the confines of a Wall Street banker, despite those times when such considerations have their place. We serve a God of love, and just as that love is deep and distinct from distorted human variations, we are called to live and think and act according to an economy not of our own constructing. (more…)

Here’s today’s offering from Jim Wallis’ Rediscovering Values for Lent on the Sojourners website:

Today, instead of statues, we have hedge funds, mortgage-backed securities, 401(k)s, and mutual funds. We place blind faith in the hope that the stock indexes will just keep rising and real estate prices keep climbing. Market mechanisms were supposed to distribute risk so well that those who were reckless would never see the consequences of their actions. Trust, security, and hope in the future were all as close to us as the nearest financial planner’s office. Life and the world around us could all be explained with just the right market lens. These idols were supposed to make us happy and secure and provide for all our needs. Those who manage them became the leaders to whom we looked, not just for financial leadership, but direction for our entire lives. That is idolatry. (page 29).

Last month, Fidelity Investments reported that the average 401(k) balance reached a 10-year high at the end of 2010 — two years after the financial crisis and recession. It also pointed out that “the majority (53%) of participants in 401(k) plans … earning between $20,000 and $40,000 do participate, and 71 percent of participants earning $40,000 and $60,000 participate.” That’s a lot of lower-income idolatry.

This is not a picture of the stock market

According to a report (issued in 2008) by the Investment Company Institute and the Securities Industry and Financial Markets Association, “ownership rates for equities and bonds across U.S. households grew dramatically between 1989 and 2001, but have since tapered off. In the first quarter of 2008, 47 percent of U.S. households (54.5 million) owned equities and/or bonds. The overall ownership rate in 2008 is still much higher than it was in 1989.” The report noted that “ownership of these investment assets has declined since 2001, as increasing market volatility has reduced Americans’ tolerance for risk.” But, most likely, those investment funds will be saved somewhere or moved into lower risk vehicles.

Of course, if you are afraid that investing in the stock market, a mutual fund, a money market account, etc., makes you an idol worshipper, the cure would be to stuff your cash into the mattress or bury it in a coffee can. But would that be good stewardship?