VOL. XCIV, NO. 247
BOOK BREAKDOWN
NO ADVICE
Beginner · 2019
In God We Trust: Morally Responsible Investing
by George P. Schwartz, Michael O. Kenney · Partly Dated
A faith-based, exclusionary-screen approach to public-market investing: pursue normal long-term investment goals while avoiding companies judged morally objectionable (as defined by the book's framework).
Level
Beginner
Strategies
2 types
Frameworks
4 frameworks
Rating
Target Audience
Ideal Reader
- Investors who want their portfolio aligned to explicit pro-life / pro-family moral screens
- People confused by ESG/SRI and looking for a values framework with clear yes/no criteria
- Investors who want a practical implementation example via an existing fund family (Ave Maria Mutual Funds)
- Beginners who want a combined intro to investing basics + values screening
May Not Suit
- Readers looking for a valuation textbook (DCF/accounting deep-dive)
- Investors wanting broad-based ESG or Catholic social teaching coverage across labor/environment/defense, etc.
- People who prefer shareholder engagement over exclusionary screening
- Anyone who wants politically neutral investing content
Investor Fit
| Strategy | Portfolio Management · Behavioral Finance |
| Time Horizon | Long-term (5+ years) |
| Asset Focus | Equities · Fixed Income · Multi-Asset |
| Math Level | Basic Arithmetic |
| Prerequisites | Basic understanding of stocks, bonds, and mutual funds helps but is not required |
Key Learnings
- 1Investing is not morally neutral: owning a company supports its success; investors should be able to say they are comfortable with what they own
- 2Morally Responsible Investing (MRI) is framed as participating in capital markets while avoiding morally objectionable businesses
- 3A clear, rule-based moral screen is more implementable than vague do-good labels
- 4You can pursue normal investment objectives while applying values constraints (with tradeoffs)
- 5Avoiding certain industries/behaviors narrows the investable universe and can change risk/return vs unconstrained benchmarks
- 6If you delegate, you need governance (an advisory board / policy) so the screen stays consistent over time
- 7Moral screens still require standard investing discipline: diversification, cost awareness, and long-term temperament
Frameworks (4)
Formulas (3)
Case Studies (1)
Ave Maria Mutual Funds (screened fund family)
Takeaway
An example of applying a defined moral screen within mainstream fund management - showing feasibility, governance needs, and tradeoffs.
Mental Models
- —Ownership = participation (investing choices have downstream effects)
- —Policy-first investing (write the moral constraints before picking products)
- —Exclusionary screen vs values-neutral benchmark (constraints change the opportunity set)
- —Clarity beats vibes: explicit criteria reduce rationalization and inconsistency
- —Tradeoffs are real: values alignment is a portfolio constraint like liquidity or taxes
Key Terms
No glossary terms documented for this book.
Limitations & Caveats
Keep in mind
- •Narrow moral screen focus may omit other issues some investors consider morally relevant (e.g., labor practices, environment, weapons, etc.)
- •The book is partly tied to late-2010s U.S. political/economic commentary and may feel dated in those sections
- •Exclusionary screens can create sector tilts and tracking error vs the broad market
- •Some readers may view it as closely tied to (or marketing for) the Ave Maria fund family rather than a broad survey of moral investing approaches
Reading Guide
Priority Reading
- Why Morally Responsible Investing?
- Chapter 6: Morally Responsible Investing
- Chapter 9: Good Returns
- Chapter 11: Sound Advice
Optional Sections
- —Photo gallery and appendices unless you want discussion prompts
- —Time-bound political/economic commentary if you only want the investing framework
Ratings
Concept Tags
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