Socially Responsible Investing? Cry Me a River

A random email hit me this morning:

“Historically, socially responsible investing (SRI) has been associated with a strategy of avoiding companies involved in “vices” such as guns, gambling, alcohol and tobacco. A more modern view also focuses on ethics (perhaps avoiding firms that negatively affect the global economy) and sustainability (protecting the environment and managing the planet’s limited natural resources). As a result, today’s more expanded view includes investment opportunities in areas such as water treatment, energy conservation, agricultural production and pollution management.”

There is no way to remove every ‘bogey man’ from what you might invest in or not. If you think like this excerpt go see a shrink. You should be working on more pressing issues first.

  • Sandwah

    definitely please stop investing in these vices, leave them to me. those socially irresponsible guns gave us independence 230 yrs ago so that you can be free to be an ignorant investor today.

  • Chuck

    The problem with “Socially Responsible Investing” is that, like other fundamental views, it’s hard to define. The SRI “experts” don’t agree on what is socially irresponsible and thus should be shunned. (OK they all avoid tobacco, but beyond that, no consensus.) I remember picking up a book on the subject and looked up a well known company engaged in the health care equipment field. What could be more socially responsible than helping sick people? A small part of their business was making radiation sources for diagnostic equipment. This meant that they were evil because there were part of the evil “nuclear” industry. Go figure….


Trend Following

Learn trend following now with our firm.

 

Free Brand new to trend following trading?
Free resources are an immediate starting point for your trading education.

Explore

Premium Need to take your trading to the next level?
15+ years of access & research brings you the chance for outsized absolute returns.

Get Started

Switch to our mobile site