Sometimes you read a book and realize quickly that it probably won’t make a tremendous difference to your life. It could be that the book simply isn’t very good—we have all encountered those books. Or it could be that its information is so irrelevant that there is nothing to gain from it, or already so familiar that you’ve already applied all of its lessons.
But then sometimes you read a book and realize in the opening pages that it might make a huge difference to your life—that it has already begun to shift your thinking in an integral way. It did not take me long after beginning The Good Investor to realize it was going to fall squarely into the second category.
The Good Investor is written by Robin John, who co-founded an asset management firm and now serves as its CEO. The book’s subtitle explains what it means to be a good investor: “How Your Work Can Confront Injustice, Love Your Neighbor, and Bring Healing to the World.” John’s concern is that many Christians do not understand how their investments may be fostering injustice and causing harm. Not only that, but many Christians do not understand how their investments could be fostering justice, expressing love to their neighbor, and bringing healing to the world. The way we invest our money is not neutral, and we are responsible before the Lord for the allocation of each dollar.
“This is a book,” he begins, “about joy, specifically the joy that comes from making the world good.” This may seem like an odd way to begin a book about investing, but he is convinced there is no conflict between joy and investing. “What if investing holds … the potential for creative, generative good? What if investing can help us address our own genuine financial needs while at the same time confronting injustice, loving our neighbors, and healing some of the world’s crushing pain? What if investing has a higher calling: to serve the common good and to be an engine of blessing? To be a path to joy?” This is the book’s great challenge: That investing can be a path to fighting what is wrong in the world and pursuing what is right. “Your life and your financial decisions can make a significant impact. We are not talking about abstract ethical ideas but realities grounded in the concrete experiences I have had in my life on two sides of the world: from a childhood in a small village in India to leading a US investment firm that manages billions of dollars in assets.”
I think many of us feel that our investments—often measured in minuscule amounts—have no real impact on the world. Not only that, but we draw little connection between our convictions and our investments. But John wants us to see that we are not powerless and that our choices necessarily have an impact on us and the world around us. “Our everyday decisions can make the world more what we long for it to be, more what God longs for it to be. And something most of us do already (investing) can participate in the world’s healing. The allocation of capital is a powerful tool; when used thoughtfully, and in connection with its true purpose, investing can create immense value and solve some of the world’s deepest needs. Or, when disconnected from its true purpose, it can extract value and cause extensive damage.” Thus, we can do good through our investments. In fact, we ought to.
This leads to a reader-friendly explanation of how our investments can foster harm or foster good, depending on how we allocate them. Though John’s context is American, what he teaches transcends nations (avoiding, for example, specific financial tools available only in the US) and is as relevant to me as a Canadian as it would be to you, whatever your nationality. To invest in a company is to become a part-owner of that company and to have a hand in its success. It is to put our money to work toward the success of a business. If that company is doing something that harms others or the world, we bear some of the responsibility for that harm. This puts the onus on us to know what we are invested in and to direct our investments toward companies that do not harm, or even better, toward companies that are committed to doing good. “It’s uncomfortable to recognize how as owners in these companies, we profit from ‘ill-gotten gain.’ We profit from harm done to others. Businesses should aim to serve the common good, and as owners, we have the responsibility to see that our businesses fulfill their purpose. As an owner, then, our first question is not how much money will I make but what kind of companies and businesses do I want to own?”
Even at the founding of his business, John was committed to investing only in companies that do good. To that end, he developed five values to guide his investments. He would look to invest in companies that respect the value and freedom of all people, demonstrate a concern for justice and peace, promote family and community; exhibit responsible management practices, and practice environmental stewardship. He does not demand that every reader adopt these same values, but rather suggests that each of us consider what is important to us as we decide how to allocate our investments. “No company will embody all these values perfectly. And no investment company will either. However, if we’re going to be part of making this better world, then it will mean making choices that actively move us in this direction, taking concrete steps toward a future that requires more than platitudes. This vision of God’s better world compels us to spurn harmful, oppressive practices and embrace a healthy, flourishing horizon. Together, we can invest in this better world.”
Christians can promote that better world by investing in such a way that they promote love for their neighbors, that they resist investing in businesses that perpetrate harm, and that they search out investments that promote whatever serves the common good. And then, as those investments earn a return, they can unleash generosity toward a world in need.
I found The Good Investor a deeply challenging book and one that is going to demand a response from me, though I have not yet decided what that response will be. I need time to let it sit and percolate, and need time to apply its lessons. But I am eager to take action on its main point—that my investments, paltry though they may be, must not inadvertently be a means of doing evil in the world, but can and should be a means of doing good. And how much better could it be if those who are committed to a better world take their capital away from businesses that are bringing harm and direct it together to those that are doing good? It is a joy to imagine what we could accomplish together.
Whether you are heavily or lightly invested or whether you are merely hoping to be in the future, and whether you take care of your investments yourself or prefer to rely on mutual funds, ETFs, or financial planners, I’d recommend you read this book. I think you will find, as I did, that it will challenge you in the way you invest your money. It will help you understand that the stakes may be much higher than you think.
