By Tim Macready
Society tells us that the purpose of investing is to take money and use it to make more money. But I want to tell you that the purpose of investing is to take capital that would otherwise be unproductive, and allocate it in ways that help enterprises to create goods and services that lead to human flourishing.
Investing must be an expression of both the creation mandate and the command to love our neighbor. Courageous leadership is investing out of this conviction, rather than simply a desire to multiply money – even if for virtuous purposes.
Many of you are familiar with the parable of the talents. The master has three servants and gives them each an amount of money to steward while he is away. Two servants are faithful and double their money while the master is gone. The third servant is unfaithful and simply returns the master’s capital.
Most commonly, I hear that this parable teaches that we must make a good return from the capital that we’ve been given. But look with me a little closer? Why does the master condemn the unfaithful servant?
“You wicked and lazy servant. So you knew that I am a harsh man, reaping where I have not sown and gathering where I have not scattered seed. So you ought to have put my money on deposit with the bankers, so that when I returned I would have received what was mine, with interest.” (Matthew 25:26-27).
What are the problems for the unfaithful servant?
- He is lazy.
- He is unwilling to take risk.
- He doesn’t really know the master. He isn’t doing what the master would have him do with the assets.
I would put it to you that the majority of faith-based organizations invest like the wicked servant. They are lazy; investing in passive products and leaving most of the work of thinking about investing to others who don’t share their convictions. They are unwilling to take real risk by having a portfolio that might deviate materially away from their peers. And they don’t invest as we would expect ones who know the master to invest.
In Portfolios
Can you point to an area of your life that is not (or at very least ought not to be) deeply affected by your faith? My love for Jesus changes how I live. It changes the way I think about my work; my family. It changes my daily routine and the way I speak and think.
So ought it to be in investment portfolios. If we understand the purpose of investing differently; if we are to have courageous portfolios; everything must look different. Investment objectives that take into account more than just financial objectives, perhaps even prioritizing non-financial objectives. Investment governance that allows for love, compassion, and discernment to enter the room. Asset allocation that takes into account the true purpose of investing. Portfolios that are constructed with building blocks – whether funds or individual securities – that seek after our true objectives. Every single asset class; every single investment, can be informed by our faith, with the fingerprints of faithfulness seen everywhere.
What Happens?
Jesus tells us in that we cannot serve both God and money; that where our treasure is, there our heart will be.
We understand that this means that you can understand someone’s true priorities from where they spend or invest their money. Last year, Felipe showed me his modest personal portfolio. What I discerned from that portfolio is that – while Felipe seeks a return, he values faithfulness over maximization. He cares for the poor. He is willing to sacrifice to support impact. He values solidarity and a feeling of proximity when he invests. His heart shapes where he invests his earthly treasure.
But there is another, I think equally true, way of understanding Jesus words. Beyond generating returns; beyond even having a positive impact on the world, our investing shapes our heart. We care about; seek to understand; desire good things for the investments we make. Where we place our treasure shapes – both personally and corporately – our hearts.
I can’t promise you that this kind of investing will get a better return. But I do know that when we step out in courageous faithfulness with portfolios – whether personal or institutional – we begin to have our hearts shaped towards the things that the Master cares about. I’ve had the privilege of seeing many individuals and institutions take this step. And I want to invite you to imagine with me what might happen – for our hearts, our communities, and the world – when we do?
What is the next step of courageous leadership for you?