Social "Green" Investing has been around for a couple of decades with just a ripple effect on the macro investing community. However, I notice that we are at an inflection point in the world that is defined by personal investing along with one's personal beliefs. And I believe this has the potential to change our world.
Yesterday, I was talking with my mother, who along with my father and myself and a number of friends who I've referred the book, have found the wisdom of Dr. Roger Walsh's Essential Spirituality.
My parents had been hanging out with some "friends", when the woman commented on how she needs to allocate more of her portfolio to tobacco because she thinks it's going to be a good investment. Now, my mother is a famed anti-smoking person, known in our tight circles for asking people to put out their cigarettes even if they were smoking outdoors! So, my mom says to her friend, "How could you invest in tobacco? It kills people!" And the woman responded, "I don't care. It's addictive and therefore a good investment for us." You could imagine the effect this statement had on my mother. She ran for the hills.
Recently, I purchased Amaresco (AMRC), a green energy company with a brilliant CEO, which has been a phenomenal investment up about 30% in the last six months. I certainly invest in other companies which aren't necessarily "green", however, I've become more sensitive to the ramifications of where I put my money. I now associate with people who I respect and care about , and even if I don't necessarily believe in everything they believe in, or look at the world similarly, I will be with the people for whom I care. The same is true for what I own -- I cannot strive for peace, tranquility and happiness, without also having a sensitivity for where I invest. It shouldn't be just about the money.
Excellent article; it certainly made me feel guilty for some of my current investments!
ReplyDeleteI did experience a bit of a moral dilemma when choosing these investments, but like your mother's "friend" in the story, I based my decision on expected returns instead of social consciousness.
A question I have is "Is buying a company's stock really supporting them, particularly when we're dealing with a secondary market?" After all, most transactions occur between investors and not directly from the company itself.
If so, in what way does my purchase of EvilCompany support them?
Thanks for your comments. The sovereign owner of influential means of creating capital has changed hands. More importantly, our capital system as we know it almost collapsed completely, and there's been little regulatory change to prevent such a catastrophe from happening again.
ReplyDeleteMoreover, we now know that earning wealth has no connection to attaining happiness.
So, when you decide you want to buy a stock even in the secondary market, you're supporting the company's business at the moment you place your bid.
I invest in companies I believe in. I can't see how it would be possible to do anything else. Why would I? To earn an extra 1%, 5%, 10%? Does it really matter? The risk-return scenario doesn't make sense when you look at it that way.