Bahnsen Talk Response

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Ronen Wyrick

12/02/22
Economics for the Citizen

David Bahnsen PHIG Talk Response

Near the beginning of his talk, Mr. Bahnsen explained how his philosophy of investment

is dictated by his philosophy of economics, which is in turn ruled by his Christian worldview.

God has given all men a creation mandate – a command to go out and fill the world and make the

most of God’s blessings to mankind. We are to be sub-creators, and God has equipped us for this

role by making us in His image. This explains and justifies man’s proclivity for enterprise – his

natural tendency to start businesses. It also tells us that man can (and often does) make wise,

well-reasoned decisions in the financial sector and beat the market. Within this framework,

government intervention and actions restricting personal freedom are negative. Because man can

make personal enterprise profitable, Bahnsen said that his fund favors equity investments (like

stocks and PE) over debt (like bonds). Equity places his fund in a position to profit from human

ingenuity versus just receiving a uniform return on his capital.

Further in his talk, Bahnsen explained how his investment strategy relies heavily on

dividend returns. He said that companies can find ways to make their earnings look more

favorable, yet no company will deliberately pay out more dividends than it can afford. Thus,

dividends are a good indicator of a company’s stability and potential for future growth. This

explains why Bahnsen is such a strong advocate for oil and gas companies, which tend to pay out

high dividends.1

Finally, Bahnsen’s remarks on Kuyper and the sanctity of all work caught my attention.

While explaining why he got involved in investment, Bahnsen said he subscribed to Kuyper’s

1
My PHIG team is currently pitching a midstream oil and gas company called Enbridge. We were influenced in this
direction by a podcast that Mr. Bahnsen put out during the fall.
philosophy. He believes that Christ is Lord of all trades, and we can serve him by excelling in

any area. I believe this as well. This understanding of work will continue to affect my future as I

decide on possible careers over the next couple of years.

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