Entire Stock Market

Our extensive and thorough selection process starts with carefully analyzing over 11,500 publicly traded companies from across the major US stock exchanges, including the New York Stock Exchange and the Nasdaq Exchange. We look at companies of all different sizes and across every industry sector to ensure we are considering the full investment universe. The goal is to search for value across the entire breadth of the public markets using a systematic methodology rather than limiting ourselves to only well-known large-cap stocks. Beginning with over 11,500 stocks gives us the largest possible opportunity set to then methodically filter down using our litmus tests for financial, fundamental, and biblical alignment. While screening over 11,500 companies requires significant analysis, the end result is a rigorously selected portfolio diversified across the market.

Litmus Test: Value & Fundamental

First, ten litmus tests are assigned for financial values like earnings yield, book value compared to equity, overall profits of the company, cash flow, assets, liabilities, sales, etc. These categories help us locate companies selling for low prices relative to their benefits. All Companies must pass at least 8 of our 10 litmus tests assigned for financial values to be considered for the portfolio.

Next, ten litmus tests are assigned for fundamentals like Earnings per share, revenue growth, long-term debt amount, company stock price to earning ratio, etc. All Companies must pass at least 8 of 10 litmus tests assigned for Fundamentals to be considered for the portfolio.

Our values and fundamentals test usually narrows the list to just 125-150 companies.

Litmus Test: Biblical Values

Next, eight litmus tests are assigned for morally screening out the companies that pass the values and fundamentals test but may be involved in the following:

  • Manufacture, sale, or distribution of abortion pharmaceuticals
  • Manufacture, sale, or distribution of pornography
  • Manufacture, sale, or distribution of alcoholic beverages
  • Manufacture, sale, or distribution of tobacco products
  • Involvement in Gambling: casinos, hotels, online gambling websites, lottery tickets
  • Charitable giving to abortion providers, such as planned parenthood
  • Companies that use child labor
  • Companies that support LGBT activism, lifestyles, or causes.

This narrows the list even further to around 125-135 companies of the original 11,500.

Final Selection: Diversify into Sectors

Lastly, we narrow down the list even more as we look at each company’s market cap and sector. We group the companies across the 11-12 sectors of the markets to select our 50 finalists. We then buy an equally weighted share of the most deeply valued, fundamentally sound, biblically responsible, non-woke companies we can find in the markets of each company and sector for the portfolio using the scriptural principle of Ecclesiastes 11:2, which says to not invest more than 12-15% in any one sector (no more than 2% in one company for our portfolio), ending up with approximately 3-4 companies representative of each sector for the portfolio.

Once per quarter, we repeat this whole process for the portfolio. However, we monitor daily to ensure there haven’t been any significant changes in the metrics requiring a sale.

If you want our diversified, actively managed, deep value, biblically responsible, non-woke stock portfolio, call or text 830-609-6986. The minimum investment is $50,000 per account; the annual fee is 1%, or 0.25% billed quarterly.