Podcast Episode 13 – Uniting a City of Faith Driven Investors with Will Thomas and Dean Macfarlan

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Today, we have not one special guest but two for you to hear from. We are talking with Will Thomas and Dean Macfarlan down in the heart of Texas. They’re both accomplished investors on their own, but what makes the story even more compelling is that they’re a part of a new movement of City Networks where like-minded Faith Driven Investors are uniting to do more together than they might be able to do apart.

Ambassadors Impact Network is a group of over 30 different members that are coming together to collectively invest in and encourage Faith Driven Entrepreneurs. Hear how they’re connecting faith-driven entrepreneurs with like-minded investors and how you can replicate their success in your own city.

This is a movement we’re hoping to see take off across the country, and we’re excited for you to hear Dean and Will share what they’ve learned in their experience. As always, thanks for listening.

Useful Links:

Ambassadors Impact Network

Angel capital association

Creating Your Own Angel Investing Group

“Priorities” and Investing

 Image by  Eventide

Image by Eventide

This article was originally published here.

Check out Eventide Investments for other quality content!

by Finny Kuruvilla

The original meaning of ‘priority’ was singular — the very first thing. At Eventide, our investing priority is to own businesses that advance the global common good.

One of our favorite books that we read in the last year was Greg McKeown’s Essentialism: The Disciplined Pursuit of Less. Essentialism is defined as “the relentless pursuit of less, but better.” How many of our individual and corporate lives are overloaded? The book wryly describes staff meetings that have ten “top priorities” without any sense of irony. Even the English language has been evolving:

The word priority came into the English language in the 1400s. It was singular. It meant the very first or prior thing. It stayed singular for the next five hundred years. Only in the 1900s did we pluralize the term and start talking about priorities. Illogically, we reasoned that by changing the word we could bend reality. Somehow we would now be able to have multiple “first” things.

(McKeown, p. 16)

This reminder should challenge all of us in nearly all domains of life. In investing, in particular, one cannot have multiple priorities. This, of course, does not mean that only one thing will happen — it means that we can only truly follow one ‘lighthouse.’ We have made the case that the lighthouse should not be financial returns but promotion of the global common good. While this can seem counterintuitive at first, we believe the best way to generate attractive, long-term, risk-adjusted returns for our investors is to seek to invest in companies that best serve the needs of others. In pursuing that one goal, we believe financial returns generally follow as a happy byproduct.

One of the other thoughts that McKeown offers is the idea that we’re not living merely in information overload but in opinion overload. (Think of how many, often contradictory, opinions there are about dieting strategies.) It’s easy to sympathize with the average investor who is bombarded with investing advice that makes the enterprise utterly confusing.

Our investment advice is not first and foremost about financial ratios and prognostications, but an appeal to the purpose of investing, and even of business itself. Our hope is that the “why” of investing will illuminate the “how” and the “what.”


This article expresses the views of Eventide Asset Management, LLC (“Eventide”), an investment adviser, and there is no guarantee that any investment strategy will achieve its objectives, generate profits, or avoid losses. Readers should be aware that Eventide’s approach may not produce the desired results, and Eventide’s ethical values screening criteria could cause it to underperform other firms that do not have such screening criteria. The term “smart” is used for informational purposes only, and does not imply a certain level of skill or training by the Adviser. All investments involve risk, including the possible loss of principal.

Eventide is providing this information for informational purposes only. Eventide serves as investment adviser to mutual funds distributed through Northern Lights Distributors, LLC (“NLD”), member FINRA/SIPC. NLD and Eventide are not affiliated entities.

(8524-NLD-12/5/2018)

Gleaning

 Image by  Melissa Askew

Image by Melissa Askew

This video was originally published here.

Check out Faith & Co. for other quality content!

by Faith & Co.

Bruce Baker, associate professor of business ethics at Seattle Pacific University, discusses the relevance of the Bible’s teachings in the modern business world.

“Every business has a field, every business has a harvest, every business has some form of work. Every business exists in a greater society. Every greater society on the face of the earth has people on the margins. Gleaning… is part of the natural operation of the business. It’s not just handing money out, it’s not just making a charitable donation. No, it’s using the engines of the business, the business model, in a way that involves people on the margins.”

– Bruce Baker

Watch the full video below!

Blessed are the Risk Takers

  Image by   Loic Leray

Image by Loic Leray

This article was originally published here.

Check out Inspire Investing for other quality content!

by Dr. Erik Davidson

“He who watches the wind will fail to sow, and he who observes the clouds will fail to reap.”

Ecclesiastes 11:4

As human beings, our capacity to worry is quite exceptional. In a worldly sense, this predilection towards fear is very understandable as bad things do happen in our lives and in the world around us. In fact, at times our worry has likely kept us from danger or harm. Personally, I know that even as the years have gone by, I have found it very difficult to break the grip of fear in my own life. If anything, I can take some small comfort in the fact that the nature of my worries has changed as time has gone by. These days, I find myself still worrying, but about different things than I did in my earlier years. That probably does not count as progress though!

Given our very human predisposition to worry, it should be no surprise that fears are especially heightened when it comes to investing. In fact, the foundational theory in the area of behavioral economics, Prospect Theory, by Noble laureate Daniel Kahneman (author of Thinking Fast and Slow) and Amos Tversky showed that humans are so overcome by fear that we instinctively weigh loss and gain prospects unevenly thereby causing suboptimal decision-making. Especially in the wake of the trauma of the Financial Crisis of 2007 – 2009, investors are predisposed to see danger lurking around every corner. These days, the list of fears that investors face is quite long: trade disputes with China, Brexit, domestic political divisiveness, Hong Kong protests, inverted yield curves, recessionary concerns, etc.

Nevertheless, despite the enticing self-preservation benefits of fear, the Bible is filled with admonitions against it (Isaiah 41:10, Luke 12:22, etc.) because of the obstructive effect it can have on our God-given destinies. Many times in the Bible, the challenge is put forward to “fear not”. Both the Old and the New Testaments have numerous stories of ordinary people overcoming their fears and taking significant risks with extraordinary, even miraculous results (think Moses, Esther, the Disciples, et al.).

In the Parable of the Talents (Matthew 25), it is illuminating to read of the master’s praise, “well done, good and faithful servant”, for the two employees who took risks with the funds that had been entrusted to them. Yet, maybe even more instructive is the scorn directed at the servant who was afraid and went and hid the entrusted funds in the ground . . . “You wicked and slothful servant” and “cast the worthless servant into the outer darkness”. If this isn’t a call to guard our hearts against acting out of fear, I don’t know what is!

Carrying over this Biblical call of risk-taking to investing, it is important for investors to be on guard against getting wrapped around the wheel of whatever the “worry of the day” may be. Rather, investors should undertake prudent risks aligned with the timeframe of their financial objective. Certainly, for short-term (less than five years) financial objectives such as planned major purchases or expenditures, risk-taking should be minimized. Actually, these sort of short-term financial goals are better viewed as “savings” rather than “investment” strategies. However, for those financial goals that are long-term (more than five years) such as young children’s college funds, retirement, a vacation home, estate plans, charitable bequests, etc. a spirit of prudent risk-taking is necessary in order to grow the funds while outpacing inflation and taxes.

The history of the stock market shows the wisdom of the Bible’s guidance on fear and risk-taking. Going back to its inception in 1927, the S&P 500, the benchmark U.S. stock market index, despite dramatic corrections and crashes, has had a total return of approximately 10% annualized. During this very long time period, despite prior generations’ “worry list” including wars, rise/fall of Communism, recessions, famines, assassinations, political discord, etc. there has never been a 14-year holding period in which the total return of the S&P 500 has been negative. Prudent risk-taking pays off over the long-term (source: Standard & Poor’s).

Obviously, “blessed are the risk-takers” is not actually one of the Beatitudes (Matthew 5). Nevertheless, investors who believe that the Bible has wisdom applicable to contemporary life are well advised to consider its guidance as it relates to fear and risk-taking as they make investment decisions.

Learn more at inspireinvesting.com

5 Ways to Invest Wisely During the Corona Virus

 Image by  William Iven

Image by William Iven

Article originally posted here by The Faith First Advisor

by Eric Schrum

1. Don’t panic sell your investments

Dalbar recently released a report that is striking. Since 1988 the stock market has returned on average 10% per year. Stock investors returns during this time…averaged a whopping 4.1%. Incredible. A large reason why is investors greatly lagged the market is their tendency to ignore professional advice and panic sell when markets drop, only to buy stocks again when the market rises. Stick to your financial plan you’ve made with your financial advisor and do not panic, even when things look scary like they do now.

2. Have Faith don’t give into fear.

John 14:27 “Peace I leave with you; my peace I give you. I do not give to you as the world gives. Do not let your hearts be troubled and do not be afraid.” Fear is our enemy in times of crisis and make no mistake, we’re in a crisis. As Christians we are called to not fear, this means making wise decisions when it comes to our investments and wealth even when our gut feelings are telling us to panic and take shelter.

3. Stay with your long-term financial plan

Ron Blue likes to say the best decisions we can make are the ones with the longest perspective. A good financial plan will take into consideration bear markets like the one we’re experiencing right now. If you find yourself wanting to deviate from your financial plan, ask yourself “Has my life situation changed?” If the answer is no, stick with your plan.

4.Keep an eternal perspective

God owns all things, including our money! If he sees fit to allow the market to drop 35%, who are we to question Him? Our response is to keep in bearing the fruit of contentment; knowing our peace doesn’t come from bull markets or the size of our IRA account. We know all things work for the good for those who love him.

5. Take advantage of the bear market

There’s a great quote attributed to J.P. Morgan getting a lot of traction recently “In bear markets, stocks return to their rightful owners.” I love that quote. This could be an opportunity to put to work the cash you’ve had on the sidelines waiting for a pullback in stock prices, rebalance when stocks are off all-time highs, or tax-loss harvest. Speak to your advisor about wise proactive action you can take during this time.

An important thing to keep in perspective is that there are much more pressing things happening in the world right now than the balance of our investment accounts. Lives are being lost, millions are out of work, and many are very afraid. Perspective is everything and we have the opportunity to minister to our neighbor in a way that points to the hope we have.

FOR MORE INFORMATION ON COVID-19, PLEASE SEE OUR PAGE HIGHLIGHTING SOME OF THE BEST RESOURCES OUT THERE FOR FAITH DRIVEN INVESTORS & ENTREPRENEURS IN THIS SEASON.

Interested in investing with Eric? Visit www.schrumpw.com/contact-us/

Investment Advisor Representative of Spire Wealth Management, LLCAdvisory Services offered through Spire Wealth Management, LLC, a Federally Registered Investment Advisor. Securities offered through an affiliate, Spire Securities, LLC.  Member FINRA/SIPC

The Case for Restarting Society Now

 Image by  Martin Adams

Image by Martin Adams

by Luke Roush

Summary Statement: The time is now to urgently begin restarting our society. This is imperative to ensure mid- and long-term human flourishing. With the same level of urgency that we moved toward implementing restrictions, we as citizens must urgently push our nation towards a thoughtful economic restart. National leadership is the art of motivating a group of citizens (not subjects) to act toward achieving a common goal. Our leaders must weigh a multitude of inputs and make bold policy decisions to promote human flourishing in the days ahead. We must hold them accountable to this duty. 

Looking Out the Front Windshield – It is not the right time for a retrospect on what should have been done differently in this crisis, but now is a critically important time for us to be focused on how our national posture must shift from being ‘on our heels’ to ‘leaning forward’ into what we do best as a nation. It’s important to note that my views are not framed primarily in economic outcomes. Our decisions as a nation can’t be directed solely (or even mostly) at outcomes like GDP growth or stock prices. These metrics matter as they eventually impact human flourishing, but they are secondary to our leadership mandate to do the most good for the most people possible. Our primary mandate must remain focused on the maximization of human flourishing, which includes both short- and long-term health and wellness outcomes.

Our Current Reality – The question now is whether we believe our healthcare system will actually be overrun in the near-term. With perhaps a few exceptions for short periods of time, we have not experienced a shortage of workers, ICU beds, or life-saving equipment. In fact, utilization rates have fallen dramatically in every healthcare system I have spoken with. Hospitals are going to be against the ropes financially due to their proactive freeing of capacity, as well as patient-driven cancellations. Most systems are facing 25-50% Q2 revenue shortfalls, and this topline miss will translate to huge losses given the low margins and fixed overhead inherent within healthcare. A number of systems are beginning to furlough or lay off employees due to this reality. A governmental bailout will almost certainly be necessary.

Some are arguing that the surge of patients is still in the pipeline, though experts increasingly agree that is less likely with each passing day. Recent modeling adjustments have revealed forecasting challenges, as the estimates were revised from 100,000-240,000 deaths to 60,000 deaths within a few days’ time earlier this week. It’s hard to read this kind of data in linear form, so I encourage you to look at the U.S. logarithmic charts on infections and deaths available at this data source.

While hospitals await the COVID-19 ‘surge’, hundreds of thousands of patients awaiting elective procedures are wondering when their procedures can be rescheduled. The term ‘elective procedure’ may imply ‘optional’, but that is hardly the case. These procedures include cardiac catheterizations (diagnostic and interventional), heart surgeries, joint procedures & replacements, back & neck surgeries, colonoscopies, gastric endoscopies, and many interventional radiology procedures, to name a few. In other words, we’re not talking about patients waiting to get a breast augmentation and tummy tuck. These are significant procedures that will have important diagnostic and therapeutic implications for patients. 

Continuing to Quarantine = Deepening the Ditch – In the same way that lives depended on quick action a month ago to curtail mass gatherings where widespread infections might have otherwise occurred, we must have the same sense of urgency in moving back towards a functioning society. Every day that we remain in shutdown carries a cost in human flourishing – both death and other forms of suffering.

While death and suffering is not directly linked to the economy or employment statistics (17 million citizens filed for unemployment in the last three weeks, and more jobless claims are en route), there are well documented indirect linkages tied to those economic statistics – problems like suicide, homicide, incidence of domestic violence, depression, child abuse, substance abuse, divorce, unwanted pregnancy, and other forms of abuse/illness which are correlated with unemployment and economic loss. These issues are particularly prevalent among citizens who don’t have access to a healthy bank account, or a 401(k) reserve, or a stable nuclear and extended family, or resource networks which can provide support in a time of need. These problems must be treated with great concern, as they are second-order effects of our current public policy, which will show up and carry a decades-long tail of negative after-effects.

An argument I’ve heard recently is that “We can’t possibly put a price tag on a human life.” While the essence of this comment resonates, the reality is more nuanced. This is an imperfect illustration, but each year ~1,250,000 people die in automotive wrecks. Most of these are, presumably, avoidable. Given the driver safety statistics, why do we let citizens <21 or >80 years old drive at all? Why don’t we limit the hours that can be driven by each person in each day to reduce drowsy driving? Why don’t we forcibly retire old vehicles that are heavy and/or unsafe (as Singapore does)? Why are people even allowed to drive routes where safer mass transportation options exist? Why do we allow the manufacturing of cars that drive >75 MPH? Why aren’t there full canopy airbags in every vehicle? Why isn’t a breathalyzer required to start a car at all times? Why don’t we have more Life Flight helicopters available to accelerate patients from serious car wrecks to the hospital? Why don’t we mandate Tesla-style autopilot for ALL cars, which would presumably be far less expensive than the $6,000+ for every man, woman, and child in the country (which we are spending via $2 trillion in stimulus funds)? 

Some of these questions are, of course, silly. But the facts are that there is data about the cost of mandating safety in a $$’s-per-life equation. The metric of Quality Adjusted Life Years (QALY) is used extensively in healthcare, to help with the economic evaluation of medical interventions. Typical benchmarks within the U.S. range from $50,000-150,000 per QALY. Based on $2 trillion in stimulus and an estimated 60,000 deaths, our current level of stimulus is suggesting just over $30 million per anticipated death in expenditures. This is not apples-to-apples, but the raw numbers are what they are and worth noticing. My main point is that there is a balance we must discern as a society between short-term outcomes and long-term outcomes. Safety and affordability. Community security vs. individual liberty. 

There are anecdotes on this last tradeoff of security vs. liberty which can be drawn from the South Korean and Singaporean responses to COVID-19. Here in the U.S., we could absolutely save lives if we submitted to government-directed surveillance and a more militarized tact, but that approach would not be accepted by Western citizens as it was in Asia – A Brave New World is seared into our memories. Thankfully, both political parties seem to grasp this and understand the dangers of letting that surveillance genie out of the bottle. There are real tensions to be managed at a public policy level, and lives saved in the near-term isn’t the only metric that matters. Long-term flourishing and individual liberties matter. A lot. 

 

A Draft Blueprint for Restarting Society – As citizens, it is our responsibility to agitate for restarting society. We must be able to engage in a meaningful dialogue that balances both near-term and longer-term human flourishing objectives. Should all of us immediately go back to life just as it was before? No. Things are going to be different. Much of what we’ve implemented must continue in some modified form. COVID-19 case volumes are going to go up as we restart society, but hopefully with a tilt towards those less likely to require hospitalization. Those more likely to require hospitalization if they become infected – the sick and/or elderly – should continue to self-quarantine until we have a better handle on local conditions through widespread testing, and a solid treatment protocol. As fellow citizens, we must find ways to love and care for these brothers and sisters as they remain isolated. As the Gospel of Matthew (32:37-40) instructs us, other than loving God, our greatest commandment is to love our neighbor. The rest of the Gospel hangs on those two commandments, and that’s an important reminder as we head into this Easter weekend. 

What we cannot do is say, “Well, until we have a vaccine, we’re just going to be living like this.” That is a recipe for utter disaster. The risks and rates of infection are widely varied in different countries, states, and communities. Blanket policies will paralyze our movement, and we must focus on a more rapid and nuanced return to functionality. 

This restart could look like:

  • Back to Work for Most – All citizens under the age of 65 and without an underlying condition will aim to return to work on Monday, April 20th. Depending on the nature of each work environment, rotational WFH and/or a 3rd shift may be necessary to reduce personnel density. Americans want to work, and will find a way to make things work. 

  • Continued Quarantine for Some – All workers over the age of 65 or with an underlying condition will remain in self-quarantine until conditions are deemed safe by local authorities – hopefully at some point in May. Since these are the patients more likely to end up in the hospital, appropriate discretion should be used with regard to continued social distancing.

  • Health Checks and Cleaning Protocols – Everyone arriving in an office / factory / other group setting will be screened and use appropriate protective equipment while in public. If not already completed, cleaning protocols will be updated. 

  • Public Transit and Events – All those using public transit will wear protective equipment and undergo some form of low-friction screening. Depending on local conditions and other factors, state and local governments will determine what is sensible in the way of events and gatherings.

  • Testing and Monitoring – Testing will be made available for anyone exhibiting symptoms, and case volumes will be monitored for any sign of meaningful expansion which could overwhelm a local healthcare system. Given measures 1) thru 5) above, the likelihood of an outbreak such as what occurred in China/Italy/NYC becomes near-zero. If facts on the ground evolve negatively, we adjust and proceed on a local or regional basis. 

My hope and prayer is that, as citizens, we recognize the data that is unfolding and have the courage to quickly step back towards a functional economy along the lines of these draft thoughts. This will be an incredibly challenging journey, but we must quickly begin for the well-being of our fellow citizens, and the future of our nation. America is a beacon of freedom and light for citizens all over the world, and now is a great time for us to step forward into that leadership.

For more information on COVID-19, please see our page highlighting some of the best resources out there for Faith Driven Entrepreneurs in this season.