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

3.3

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

StrategyPortfolio Management · Behavioral Finance
Time HorizonLong-term (5+ years)
Asset FocusEquities · Fixed Income · Multi-Asset
Math LevelBasic Arithmetic
PrerequisitesBasic 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)

portfolio

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

  1. Why Morally Responsible Investing?
  2. Chapter 6: Morally Responsible Investing
  3. Chapter 9: Good Returns
  4. 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

Rigor
3
Practicality
4
Readability
4
Originality
3
Signal To Noise
3
Longevity
3

Concept Tags

morally_responsible_investingvalues_based_investingfaith_based_investingnegative_screeningpro_lifepro_familyabortion_screenpornography_screenplanned_parenthood_screenembryonic_stem_cell_research_screeninvestment_policy_statement

Ready to apply these frameworks?

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