One of the main tenets of biblically based investing is the practice of ethical screening. Investors who follow this approach scrutinize companies and industries based on their adherence to biblical principles, such as treating employees fairly, promoting environmental stewardship, and avoiding involvement in activities considered sinful, like gambling, pornography, or the production of harmful substances. By evaluating potential investments through a moral lens, investors can select those that align with their values and avoid those that conflict with their beliefs.
Beyond avoiding companies and industries that violate biblical principles, biblically based investing also emphasizes the importance of making a positive impact. Investors can seek out companies that actively promote social good, such as those that provide affordable housing, promote education, or engage in charitable work. By supporting these organizations, investors can help to make a tangible difference in the world, while also enjoying the financial benefits of their investments.
Stewardship is a central theme in the Bible, and it plays a significant role in biblically based investing. This principle refers to the responsible management of resources, including money. By practicing good stewardship, investors can ensure that their financial decisions contribute to the well-being of others and the environment, rather than causing harm. This might involve carefully selecting investments that promote sustainability, supporting local businesses, or simply being mindful of one’s consumption habits.
Just as with any investment strategy, diversification is essential for biblically based investing. A diversified portfolio reduces the risk of financial loss by spreading investments across a variety of asset classes, industries, and geographic regions. By incorporating a mix of stocks, bonds, and other investment types, believers can maintain a balanced approach to investing that aligns with their faith while still providing opportunities for financial growth.