Investing: The 4th Source of Alpha With Shaun Morgan

Show Notes

• Alpha refers to an investor making higher returns than the overall market.
• The first source is having access to superior information, like fundamental investors using detailed research.
• The second source is better processing of information, where quantitative investors use models and patterns.
• The third source involves exploiting irrational behavioral biases in other investors, like investing contrary to market trends.

• The fourth source comes from a biblical worldview, focusing on why to invest, not just how.
• It involves assessing if a business's product or service contributes to human flourishing and cares for all its stakeholders.
• This approach aligns with loving God and neighbors, seeing the purpose of business as serving people.

• A positive example is a lab instrument company that invests in its employees and prioritizes customer service, leading to better products and loyalty.
• A negative example is a pharma company that extracted value by hiking drug prices without adding real value, ultimately leading to its downfall.
• This approach contrasts companies that create real value with those that merely extract value from society.

• Eventide rejects the false dichotomy between biblical virtues and business success.
• The company values qualities like kindness and servant leadership, increasingly recognized as good business practices.
• They focus on how companies treat their stakeholders, believing it leads to sustainable business success.
• This approach grows the business pie, benefiting all stakeholders and leading to long-term success.

• I'm not sure which student loan repayment option to choose: the income-driven repayment plan where the loan can't be forgiven, or the term-based plan with fixed payments and potential loan forgiveness.
• I just had a baby and have about $5,000 in medical bills; I'm wondering if it's better to save up and pay off these bills in full or to pay in segments while building an emergency fund.