Three Sharia-compliant growth companies

Professional investor Scott Klimo of the Saturna Al-Kawthar Global Focused Equity ETF tips three Sharia-compliant stocks.

Nintendo's Super Mario
Nintendo has produced some of the most-loved characters, games, and consoles.
(Image credit: © BEHROUZ MEHRI/AFP via Getty Images)

We try to invest according to the tenets of Islam, sometimes referred to as Sharia law. A core part of this is not investing in companies engaged in prohibited activities or products, including gambling, alcohol, pork, and weaponry. However, a lesser-known core element entails the avoidance of conventional financial activities, such as banking, due to the prohibition on interest (sometimes called usury).

An added element is a limit on the amount of debt a company may carry for it to be investable. Finally, Islamic investing is just that – investing. It condones neither active trading nor speculation. We invest for the long term, viewing ourselves as partners in the companies with which we invest. These three stocks exemplify how Islamic guidelines translate into a portfolio.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
Scott Klimo

Scott Klimo is chief investment officer at Saturna Capital