Managing Your Own Investments

NACFC: ‘Begin by Defining Your Investment Selection Criteria’

December 21, 2020

ORLANDO, Fla. — Deciding who will manage your financial portfolio is an important decision. According to the National Association of Christian Financial Consultants (NACFC), (www.nacfc.org), there are certain resources and processes they may want to consider, if investors prefer making and managing their own investments.  

“First, to be wise as a serpent,” said Mark Minnella, NACFC co-founder, and author of “The Wall Street Awakening.” “Begin by defining your investment selection criteria. Successful investing requires a ‘buy-sell discipline’ — that is, a planned purchase criterion and exit strategy for your stocks or any other investment selection. It may be as simple as past performance or because their uncle purchased it, or it could be based on complicated technical and fundamental research including PE and other ratios, momentum, relative strength calculations, etc. The point is that most investors have criteria, valid or not, they use to select stocks.”

Minnella points to the following selection criteria that all investors must possess:

1. The primary goal they desire to achieve through investing

2. What type of investment product(s) are best suited for that goal

3. The primary risks and limitations associated with such investments

“Beyond that, the paths of portfolio development are many and the theories plentiful,” continued Minnella. “Open any investment magazine and I am sure will find articles in abundance encompassing multiple investment management styles. Search the internet and millions of systems, thousands of tutorials, and limitless opinions are available to help you be a better investor, to become ‘wise as serpent,’ and to gain worldly knowledge of investment management. It can be complicated and confusing, overwhelming, or oversimplified depending on who you read or listen to.

“However, when it comes to investment portfolio development, I would like to share just a couple of words of wisdom for your consideration. The first tidbit is more a warning, regarding predicting the future. If we trust the Bible, then we know only God can see the future. So, beware of those in the world who claim to have a “system” or strategy that can tell you what will happen when, sometime in the future. This should include both buying and selling decisions.

“On the other hand, God has given us the intelligence to understand the times. To be able to look at what is happening around us, be able to interpret the current conditions and act accordingly. Consider developing at least a basic understanding of fundamental and technical indicators. Find the ones that help you discern attributes of investments that you lean towards and then utilize these indicators to develop a buy-sell discipline for your investments.”

The mission of the National Association of Christian Financial Consultants is to teach, train and encourage financial professionals to learn, share and instruct biblical stewardship to individuals and families believing that “it profits a man nothing to gain the whole world and lose his soul” (Matthew 16:26). Members will glorify God by impacting their world for Jesus Christ through teaching and practicing biblical stewardship.

For more information on NACFC, visit nacfc.org. View the media page for NACFC here.  

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To interview leadership for the National Association of Christian Financial Consultants or for information about the 2020 conference, contact Media@HamiltonStrategies.com, Nick DiFazio, 610.584.1096, ext. 104, or Deborah Hamilton, ext. 102.