Investing, Theology & Paradoxical Thinking
Are Our Beliefs Inconsistent With Our Investing Ambitions?
I recently listened to a podcast which piqued my curiosity, but not for the reasons I had anticipated.
Guy Spier was interviewing Simon Kold, author of the book, “On The Hunt For Great Companies”:
Simon Kold is the founder of Kold Investments, a Copenhagen-based investment firm. He was previously at Novo Holdings, one of the world’s largest investment organizations, with assets under management exceeding €149 billion EURO.
John Mihaljevic has also recently interviewed Simon Kold on the ‘This Week In Intelligent Investing’ podcast.
I really enjoyed his book and the podcasts mentioned, but what truly fascinated me was Kold’s background - it sent my thoughts off on an unexpected tangent.
The Paradox
Kold started his career in stand-up comedy after graduating with a degree in theology. Not exactly the typical path into investing! Most investors that I know tend to be more inclined towards mathematics, economics and law - I can tick all three of those boxes.
As I listened to Kold speak on the podcast about his background studying religion, my mind started to wander back to my days in law, and I found myself thinking about the U.K. Human Rights Act of 1998. This law brought the European Convention on Human Rights into British legislation, and one part in particular stood out to me: Article 9.
Article 9 guarantees the right to freedom of thought, conscience, and religion. On the surface, that sounds like a sensible win for everyone. But if you look closer, there’s a tension that’s hard to ignore.
Here’s the thing: religion often depends on blind faith - a belief system that discourages critical thinking and questioning, sometimes even labeling it as heresy. On the flip side, freedom of thought encourages questioning, debating, and challenging convention. So how do these two rights coexist?
It’s an interesting contradiction. The greatest entrepreneurs - people like Steve Jobs, John Malone, Henry Singleton, Alfred Sloan, Thomas Edison, Henry Ford, Jensen Huang, and so many others - built their success on curiosity, innovation, and constantly asking, “Why?” or “Is there a better way?”
The question, then, is this: can a mindset rooted in blind faith and submission to tradition really be compatible with one that thrives on intellectual curiosity and challenging conventional wisdom?
It’s tough for a person to maintain both a submissive, faith-based approach and a critically questioning, progressive mindset simultaneously. However, human behaviour is complex - so is it possible?
Rockefeller and Standard Oil
John D. Rockefeller, a devout Baptist, is a fascinating example of someone who balanced - or perhaps compartmentalized - faith and business. He wasn’t alone in this; Henry Heinz and James Cash Penney (of J.C. Penney fame) also believed their achievements were made possible by their faith in God.
These men show how cognitive dissonance can allow people to separate critical thinking in one area (like business) from faith-based beliefs in another (like personal spirituality). Howard Gardner’s theory of multiple intelligences backs this up, suggesting that people can apply different types of intelligence in different parts of their lives.
Rockefeller’s faith was central to him. He saw a strong relationship with God as essential for honest and meaningful work. Every morning, he’d start his day by reading the Bible, and he attended family prayer meetings at least twice a week. He even led his own Bible study with his wife, Laura Spelman Rockefeller and Sundays were sacred - he observed the Sabbath and rested without fail.
"There is nothing in this world that can compare with the Christian fellowship; nothing that can satisfy but Christ."
J.D. Rockefeller
From an early age, Rockefeller was deeply involved in his church. By 21, he was on the board of trustees, actively participating in meetings and decision-making. His support for Christian causes was immense: he helped establish Central Philippine University (the first Baptist university in Asia), funded missionary work, and backed Christian schools like Spelman College, named after his in-laws.
Tithing - giving 10% of his income to the church - was a lifelong habit for him. And as his wealth grew, so did his giving. He donated to churches, schools, hospitals, and missionaries, guided by biblical principles like Luke 6:38: “Give, and it will be given to you... For with the measure you use, it will be measured to you.”
“I believe the power to make money is a gift from God.”
J.D. Rockefeller
Rockefeller viewed his success as part of his spiritual journey, a result of living in harmony with God’s will.
But here’s where the contradictions start to show.
While his faith emphasized fairness, integrity, and kindness, Rockefeller’s business practices often told a different story. He made secret deals with railroad companies to secure cheaper shipping rates—part of the notorious Southern Improvement Company scheme. This move crushed competitors, forcing smaller refineries out of business. It was a brilliant strategy, but hardly in line with the Christian principle of treating others as you’d want to be treated.
Standard Oil’s tactics were ruthless. Rockefeller bribed politicians and railroad officials, like when Pennsylvania legislators were paid off to block competing pipeline projects. These actions fly in the face of Christian values like honesty and integrity.
Then there was the infamous “Cleveland Massacre” in 1872. Rockefeller bought out 22 of his 26 competitors in Cleveland - often at rock-bottom prices - after intimidating them with threats. It was a power move that cemented Standard Oil’s dominance but didn’t exactly reflect kindness or respect for others.
Standard Oil’s labor practices were also criticized. Wages stayed low, and prices were kept high to maximize profits, creating hardship for workers and consumers -something that clashes with Christian teachings about caring for the poor and vulnerable.
So, what does all this show?
Rockefeller’s life reveals a significant gap between his Christian principles and his business decisions. On one hand, he was a deeply religious man who gave generously to causes he believed in. On the other, he was a ruthless businessman whose actions often contradicted the very faith he held so dear.
It’s a complex picture of a man who was both a devout philanthropist and a cutthroat business magnate - someone who seemed to live in the tension between faith and ambition.
Islamic Finance
Islamic financing gives us another interesting example to think about. Under Islamic law (Shariah), charging or collecting interest (Riba) is strictly prohibited because it’s seen as exploitative and unjust. Instead, Islamic finance relies on alternative contracts like Mudarabah (a profit-sharing arrangement) and Tawarruq (a type of commodity Murabaha). The issue? Many critics argue these are just interest-based transactions dressed up with a different name.
This tension highlights the struggle between modern commercial needs and the strict rules of religious law. To put it bluntly, it looks like a workaround—a way to meet the demands of contemporary finance while still claiming Shariah compliance. Scholars like Taqi Usmani and Muhammad Akram Khan have been particularly vocal about this. They argue that Islamic banking has lost sight of its original philosophy, focusing instead on ways to hide interest while keeping the same economic structure as conventional finance. Usmani didn’t mince words when he said that 85% of sukuk (Islamic bonds) are “un-Islamic.”
Another challenge is cost. Islamic financial products are often more expensive than conventional ones. This is partly because of their complexity and the additional layers of compliance needed to ensure they follow Shariah law. But here’s the catch: critics argue this takes advantage of pious Muslims who are willing to pay a premium for what they believe is ethical, Shariah-compliant finance - even if, at its core, the product is functionally the same as a conventional one.
This has led to accusations of “Shariah arbitrage” where banks slap a Shariah-compliant label on a product, charge higher fees, and rely on clever structuring to make it appear religiously acceptable. Is it just smoke and mirrors?
Is Religion Inconsistent With Business & Investing
While I have enjoyed this intellectual debate, I am left none the wiser. Is religion inconsistent with business and investing? What do you think? Please leave your comments below.
