- Session 3 with Greg Lernihan -
The 4 Quadrants of a Faith Driven Portfolio
Discovering what Faith Driven Investing is and what it means for your investment portfolio.
In Session 3, Greg breaks down what a Faith Driven investment portfolio looks like. He emphasizes the need for redemptive investment capital, especially in light of limited philanthropic resources. Greg describes Faith Driven investments as falling into the Spirit-led quadrant or Maximizing Talents quadrant.
REVIEW
Faith Driven investments tend to fall in one of two categories: 1) Maximizing Talents and 2) Spirit-led. Maximizing Talents is the “winning” quadrant, where Faith Driven impact and financial return meets. Spirit-led investments are defined by their Biblical nature, employment of the marginalized, difficulty in raising capital, and being led by Spirit-led entrepreneurs.
EXPLORE THE PRINCIPLES FURTHER
Greg states, “We are stewarding His resources in lieu of trying to invest ours.” How does this understanding change our attitudes towards and the decisions we make about capital?
Greg states that Americans give $450 billion (2019 data), which is ~2% of GDP, with 1.5 million nonprofits going after that money. Yet, there is $80-100 trillion in investable capital awaiting good for-profit motives. What do these statistics mean to us as Faith Driven Investors?
Greg shares a 2x2 grid with Financial Return on the X-axis and Spiritual/Social Return on the Y-axis. The top left quadrant is Spirit-Led, the top right quadrant is Maximizing Talents, the bottom left quadrant is Burying Talents, and the bottom right quadrant is Capitalistic. What is a Faith Driven investment? How can it manifest itself in different ways? What is it NOT?
What stops us from making more Faith Driven investments?
Why is making Faith Driven investments critical for the Christian investor?
APPLY WHAT YOU'VE LEARNED
Memorize
Matthew 25:21
His master said to him, ‘Well done, good and faithful servant. You have been faithful over a little; I will set you over much. Enter into the joy of your master.
Act Differently
Review your investment portfolio in light of Greg’s 2x2 grid. What percentage of your investments fall into each quadrant?
Reflect on what is keeping you from making more faith driven investments. How could you overcome those obstacles?
Pray over your investment portfolio and ask for the guidance of the Holy Spirit.