Faith-based investing, sometimes referred to as biblically responsible investing, is a practice of allocating investment assets in a way that honors God and follows the principles of the Bible. Optimally, this includes avoidance of stocks or bonds of publicly traded companies that are associated with an activity that is considered unethical or immoral. (See Investopedia’s definition.) Some examples of business practices we avoid are those that are harmful to people (human trafficking, pornography, gambling, tobacco, abusive labor practices, abortion) or that promote values that are not biblical or that contradict family values.
In many cases, faith-based investing practitioners also seek out the stocks of companies that promote biblical and family-friendly values or that promote human flourishing. This could include clean energy or technology, healthcare firms, home ownership opportunities, among others. At LightPoint® Portfolio Solutions, we call these businesses “Shining Light Companies.”