Many people approach investing in terms of performance first and how best to maximize their returns. They ask questions like: What’s the expected return? What’s my risk tolerance? Will this help me achieve my goals?
While these questions are helpful and important, there’s another posture we can take toward our financial plan, and it starts by asking questions like: Does this investment align with my values? Do my investments promote human flourishing? Is there anything in my portfolio that goes against my personal and spiritual values?
Financial success is not just about what strategies you pursue. It’s also about what you choose to intentionally decline, and why. Just as your personal values influence how you spend your time, lead your business, and make decisions for your family, they can also play a significant role in how you invest.
What is values-based investing?
Values-based investing is an approach that incorporates personal beliefs, ethical convictions, or faith principles into investment decisions. It gets to the ‘heart’ of the matter, so to speak. Rather than focusing exclusively on financial metrics, investors may choose to avoid companies or industries that conflict with their values while favoring investments that align with causes or principles they support.
For example, an investor might use a strategy called “negative screening” to exclude companies or industries they believe are inconsistent with their personal convictions, which may include:
- Tobacco or alcohol
- Gambling
- Certain forms of entertainment
- Fossil fuels or mining
- Animal testing
- Private prisons
- Labor exploitation
- Weapons manufacturing
- Predatory lending
At the same time, investors may seek opportunities in business that demonstrate strong stewardship, ethical leadership, environmental responsibility, or positive social or spiritual impact. The goal is not necessarily to maximize returns at any cost (in fact, it may mean the investor accepts a lesser return) but to ensure that your investments reflect the same principles that guide the rest of your life.
The hidden cost of misaligned opportunities
Most people understand the cost of a poor investment decision. What often goes unnoticed is the cost of investing in something that contradicts your deeply held beliefs.
Imagine spending years building a business with integrity, serving your customers well, and trying to honor your values, only to discover that part of your investment portfolio has been supporting activities you actively oppose. For some investors, that disconnect creates mild discomfort, for others, it becomes a source of ongoing tension, or even grief.
Values-based investing helps eliminate that conflict by creating greater consistency between your financial life and your personal convictions. This doesn’t mean every investment decision suddenly becomes cut-and-dry. Today’s global markets and companies are complex and interconnected. Perfect alignment with your values may not always be possible, but having a framework or rubric for evaluating opportunities can help you make long-term decisions with clarity, confidence, and a clear conscience.
How values act as a filter for decision-making
Without clear criteria, every opportunity requires a fresh debate. But when you’re rooted in your values, decisions become more simple. You realize that every time you say yes to something, you’re saying no to something else. For instance, if you value family dinners around the table, you’ll be more selective about the evening events you commit to.
The same is true with investing. When you know what matters most, certain opportunities become obvious yes decisions while others become an easy no. Ironically, having these boundaries in place can create greater freedom.
Just as a financial plan helps determine whether a major purchase fits your goals, your values can help outline whether an investment belongs in your portfolio.
What this means for business owners and executives
Unlike someone who simply contributes to a retirement account, business leaders and executives make daily decisions that can directly impact their wealth and reputation, including:
- Partnerships
- Acquisitions
- Vendors
- Investment opportunities
The stakes are high, but values-based investing can help you ask better questions like:
- Does this opportunity align with how I want to conduct business?
- Would I be comfortable explaining this investment or partnership to my family?
- Does this support the legacy I hope to build and leave behind?
- Is financial gain causing me to compromise the principles that matter most to me?
- Does this decision give me confidence and a clear conscience?
These questions should never replace financial analysis, but they can always complement and improve it.
Considerations of values versus faith
Discussions about values-based investing always overlap with moral virtues, and sometimes they also include discussions of religious faith, but you do not have to be a Christian to practice ethical investing. Here are a few common questions we receive at these intersections:
Q: Do I have to choose values-based investing as a Christian?
A: Not necessarily. Faithful Christians can arrive at different conclusions regarding investment strategies. Some prioritize broad market exposure and focus their efforts on generosity, charitable giving, and personal stewardship. In other words, they’re less focused on the source of the money than where it goes. Others feel strongly that their investment portfolio should reflect specific biblical convictions at every level. Values-based investing is not a requirement, it’s an option that should be considered prayerfully. It’s most important that you understand your choices and ensure they fit within a comprehensive financial plan that reflects your goals and beliefs.
Q: Can I be a Christian and invest in the stock market?
A: Yes. Investing is not inconsistent with biblical principles, in fact, Scripture frequently speaks about wise stewardship and planning, multiplying resources, and preparing for the future. The challenge is not whether a Christian should invest, but how. This may include avoiding certain industries, supporting businesses that align with biblical values, and viewing wealth as a tool for serving others (and the Kingdom) rather than simply an end unto itself.
Q: If I’m not a person of faith, can I still choose value-based investing?
A: 100%. Values-based investing is for everyone. In fact, investors from all backgrounds and faiths (or no faith) can align their portfolios with causes, ethical principles, environmental or social priorities, and personal, moral convictions. It’s all about investing in a way that reflects what matters most to you, whether those values are rooted in faith, ethics, family priorities, or personal beliefs, values-based investing helps you to be intentional and create impact with your financial decisions.
Incorporating your values into your plan
As we’ve covered above, a strong financial plan can help you accumulate wealth, but it can also stand for and facilitate so much more, from ensuring your resources support your lifestyle and family, to creating Kingdom impact, and building a legacy. If this post stirred up a desire to incorporate values-based investing into your portfolio, or dig more deeply into the holdings you have, please don’t hesitate to reach out. We’d love to help you align your finances more fully with your personal values.
This content is developed from sources believed to be providing accurate information. The information provided is not written or intended as tax or legal advice and may not be relied on for purposes of avoiding any Federal tax penalties. Individuals are encouraged to seek advice from their own tax or legal counsel. Individuals involved in the estate planning process should work with an estate planning team, including their own personal legal or tax counsel. Neither the information presented nor any opinion expressed constitutes a representation by us of a specific investment or the purchase or sale of any securities. Asset allocation and diversification do not ensure a profit or protect against loss in declining markets. This material was developed and produced by Advisor Websites to provide information on a topic that may be of interest. Copyright 2025 Advisor Websites.
