Author Topic: Impact Investing in stocks-Who is interested to work on right ideas?  (Read 600 times)

Andre

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WHO like me is interested to invest in single stocks with a positive impact (Which solves social and/or ecological challenges)?
My criteria besides such a purpose is that these stocks should be equally good in their financial performance and should adhere to the following principles as well:
- integrity of management and major shareholders
- management loves purpose and which uses profits as means to serve the purpose but not as the ultimate Goal
- very long time strategy versus short term profits
- all stakeholders will be taken positively in consideration in doing business.
Would love to develop investment ideas which fulfill these criteria together with likeminded investors.

vand

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Re: Impact Investing in stocks-Who is interested to work on right ideas?
« Reply #1 on: September 10, 2019, 03:35:46 AM »
I'm guessing Tobacco stocks aren't on your watchlist, then.. ^_^

Seriously, no. I think its a mistake to conflate social agendas with business performance. They don't sit happily alongside one another. If you believe in free markets then all successful companies make the world a better place in their own way because they meet the needs of the marketplace.

Financial.Velociraptor

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Re: Impact Investing in stocks-Who is interested to work on right ideas?
« Reply #2 on: September 10, 2019, 07:48:44 AM »
Try Googling Alyce Lomax.  She has made a career out of writing about socially responsible investing.  I think she is with Motley Fool now.


terran

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Re: Impact Investing in stocks-Who is interested to work on right ideas?
« Reply #3 on: September 10, 2019, 08:07:23 AM »
Just putting this out there: investing in a company does not mean you're giving money to that company, so the best you can hope for is to have some small downward effect on the stock price. That does reflect poorly on the company's management and they have to defend why their stock price is lower, but at the same time it means that the people who do invest in the company actually make more money as they have to pay less for the same earnings. In other words, you'll pay a premium for investing only in companies you agree with, while people without your morals (or different morals) will receive that premium for their willingness to invest in those companies.

You'll also pay an additional premium in that index funds with a social agenda have to be a little more active than regular index funds in that someone needs to select what is eligible for inclusion, and they're less popular so they'll have a higher expense ratio than a regular all market tracker. You also have to consider whether the morals of the social index match your own. To be 100% true to your morals you may have to invest in individual stocks and as we all know (or if not, you can find many many threads on the topic), this is almost always suboptimal.

One suggestion I've seen in threads like this is to just invest in a regular all market index tracker, then with the extra money you'll have you can choose to donate that to causes you believe in.

Davnasty

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Re: Impact Investing in stocks-Who is interested to work on right ideas?
« Reply #4 on: September 10, 2019, 12:48:29 PM »
One suggestion I've seen in threads like this is to just invest in a regular all market index tracker, then with the extra money you'll have you can choose to donate that to causes you believe in.

Yes, far more effective method if you want to have an impact.

Buffaloski Boris

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Re: Impact Investing in stocks-Who is interested to work on right ideas?
« Reply #5 on: September 10, 2019, 02:34:51 PM »
One suggestion I've seen in threads like this is to just invest in a regular all market index tracker, then with the extra money you'll have you can choose to donate that to causes you believe in.

Yes, far more effective method if you want to have an impact.

Donate time and money to the causes that matter to you.