Investing To Change the World with Dr. Finny Kuruvilla

FaithFi: Faith & Finance | Aug 20, 2024

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Show Notes

“For we are his workmanship, created in Christ Jesus for good works, which God prepared beforehand, that we should walk in them.” - Ephesians 2:10Our good works are not for our sake but for God’s sake, to give Him glory. Investing gives us a powerful way to do that. Today, we’ll talk with Dr. Finny Kuruvilla about investing to change the world.

Dr. Finny Kuruvilla is the Co-Chief Investment Officer and Founding Member of Eventide Asset Management, an underwriter of Faith & Finance. He holds an MD from Harvard Medical School, a PhD in Chemistry and Chemical Biology from Harvard University, a master’s degree in Electrical Engineering and Computer Science from MIT, and a bachelor’s degree from Caltech in Chemistry.

The Purpose of Investing

Investing has always been about supplying capital to businesses. This concept originated in the 1400s and 1500s with the rise of corporations, particularly those financing maritime trade. Investing primarily aims to fund companies to help them do good work.

However, this purpose can be perverted to support businesses that go against God's design for humanity. Hence, it's crucial to remember that investing should always aim to fund ethical companies.

Investing as Ownership

When you invest, you become a part-owner of a company, which carries an ethical responsibility. Like owning a small business, you are accountable for the actions of the companies you invest in. This ownership confers a duty to ensure these businesses align with your values and promote good.

Integrity in Investing

Romans 12:9 states, "Let love be without hypocrisy. Abhor what is evil; cling to what is good."

This principle applies to investing as well. To maintain integrity, you should avoid profiting from industries that contradict your values, such as pornography or tobacco. Instead, invest in businesses that advance the common good, like those making significant strides in healthcare and biotechnology.

For example, advances in treatments for leukemia have dramatically increased children's survival rates, thanks to innovative companies in the healthcare sector. These companies exemplify how investment capital can drive significant positive outcomes.

Performance and Outperformance

Investing in businesses that promote the common good can lead to long-term outperformance. Studies, like those referenced in Fred Reichheld's "Winning on Purpose" and Alex Edmans' "Grow the Pie," show that companies adding value to their stakeholders often outperform their peers.

This approach aligns with the biblical principle of loving your neighbor and can result in superior long-term returns.

Eventide's Approach

Eventide uses a framework called Business 360 to evaluate how companies interact with various stakeholders, including customers, employees, and the community.

By focusing on companies excelling in value creation, Eventide aims to identify businesses aligned with promoting the global common good and likely to outperform over the long term.

The future is bright for Faith-Based Investing because of the growing awareness in faith-based and secular circles that investing inherently involves ethical considerations. This awareness will lead to more opportunities to use investment dollars constructively, promoting values that align with a vision for a better world.

Investing with integrity means aligning your investments with your values and ethical responsibilities. As Christians, this involves avoiding industries that contradict biblical principles and supporting those that advance the common good. Doing so can achieve both financial returns and a positive global impact.

To learn more about this approach to investing, visit Eventide Funds.

On Today’s Program, Rob Answers Listener Questions:

I heard somewhere that you can take 4% a year out of your 401(k)s, and they should last you, but I'm looking for information like that. How much? When do we start taking money from these 401(k)s?
I could not file my income taxes on time this year, but I did again and got an extension. Are there any penalties that I need to be aware of? I also have become very lazy regarding budgeting, keeping my finances, and keeping on track with them. How do I start over? Where do I begin?

Resources Mentioned:

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