Comments on: Are You Making Socially Responsible Investments? http://moneysocket.com/are-you-making-socially-responsible-investments/ Building wealth while enjoying life Wed, 20 Aug 2008 18:42:10 +0000 http://wordpress.org/?v=2.6 By: Ron Robins http://moneysocket.com/are-you-making-socially-responsible-investments/#comment-4568 Ron Robins Wed, 19 Mar 2008 15:59:55 +0000 http://moneysocket.com/are-you-making-socially-responsible-investments/#comment-4568 I believe it is important to apply our personal values to investing. The reason for this is that when we invest in a company, or many companies in the case of a mutual fund, we share in the responsibility for the activities of those companies as well as participate in the outcomes of their corporate actions. Furthermore, if individual investors show their preference to investing in companies with higher ethics, it spurs the entire business community towards higher ethical standards. I've been following this subject for about forty years. You and your readers might like to visit my website which covers the latest global SRI news and research. It's at http://investingforthesoul.com/ My best wishes to you and your students. Ron Robins PS There is a substantial body of independent research showing that SRI usually performs as well, even sometimes better, than conventional investing strategies. I have references to this research in 'Archives' in the above site. I believe it is important to apply our personal values to investing. The reason for this is that when we invest in a company, or many companies in the case of a mutual fund, we share in the responsibility for the activities of those companies as well as participate in the outcomes of their corporate actions.

Furthermore, if individual investors show their preference to investing in companies with higher ethics, it spurs the entire business community towards higher ethical standards.

I’ve been following this subject for about forty years. You and your readers might like to visit my website which covers the latest global SRI news and research. It’s at http://investingforthesoul.com/

My best wishes to you and your students. Ron Robins

PS There is a substantial body of independent research showing that SRI usually performs as well, even sometimes better, than conventional investing strategies. I have references to this research in ‘Archives’ in the above site.

]]> By: Aaron Stroud http://moneysocket.com/are-you-making-socially-responsible-investments/#comment-4524 Aaron Stroud Tue, 18 Mar 2008 19:52:21 +0000 http://moneysocket.com/are-you-making-socially-responsible-investments/#comment-4524 You're right, it's all about freedom which I'm a big fan of. Unfortunately, time will need to pass before people realize how generous their strategy really was. You’re right, it’s all about freedom which I’m a big fan of. Unfortunately, time will need to pass before people realize how generous their strategy really was.

]]> By: Thursday Bram http://moneysocket.com/are-you-making-socially-responsible-investments/#comment-4523 Thursday Bram Tue, 18 Mar 2008 19:40:19 +0000 http://moneysocket.com/are-you-making-socially-responsible-investments/#comment-4523 Aaron, I think that SRI can be a decent investment strategy, though I agree you might not get quite as high of returns as you could otherwise. For a lot of people, it just comes down to how they want to make their impact. For some people, their investments might be the best way for them to affect the world. Aaron,

I think that SRI can be a decent investment strategy, though I agree you might not get quite as high of returns as you could otherwise.

For a lot of people, it just comes down to how they want to make their impact. For some people, their investments might be the best way for them to affect the world.

]]> By: Aaron Stroud http://moneysocket.com/are-you-making-socially-responsible-investments/#comment-4520 Aaron Stroud Tue, 18 Mar 2008 19:20:30 +0000 http://moneysocket.com/are-you-making-socially-responsible-investments/#comment-4520 Great post Thursday. Socially responsible investing is an interesting idea, I'm just not sure it translates into a good investment strategy. Have you run across any SRI index funds? Even then, I'm not sure most people would be happy with SRI fund returns. For example, most businesses recycle anything that has value. They simply can't afford to. Similarly, no company intentionally pollutes more than they have to. It comes down to a cost vs rewards decision---some pollution is inevitable. So I would expect SRI approved companies to offer lower returns to investors over the long haul. If a company is choosing to spend more money and resources to recycle materials that could be bought more cheaply elsewhere, then that is less profit that can be passed on to investors. Personally, I'd prefer to earn more so I can make a personal impact on the world. Great post Thursday. Socially responsible investing is an interesting idea, I’m just not sure it translates into a good investment strategy. Have you run across any SRI index funds? Even then, I’m not sure most people would be happy with SRI fund returns.

For example, most businesses recycle anything that has value. They simply can’t afford to. Similarly, no company intentionally pollutes more than they have to. It comes down to a cost vs rewards decision—some pollution is inevitable.

So I would expect SRI approved companies to offer lower returns to investors over the long haul. If a company is choosing to spend more money and resources to recycle materials that could be bought more cheaply elsewhere, then that is less profit that can be passed on to investors.

Personally, I’d prefer to earn more so I can make a personal impact on the world.

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