Podcast Episode Details

Investing To Change the World with Dr. Finny Kuruvilla

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Episode 458

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“For we are his workmanship, created in Christ Jesus for good works, which God prepared beforehand, that we should walk in them.” - Ephesians 2:10

Our 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

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Published on 1 year, 4 months ago