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Are there any people trading on companies trading their profitability for moral righteousness? Many companies are doing poorly now anyways, but I wonder if it i

by shiado 6y ago

Are there any people trading on companies trading their profitability for moral righteousness? Many companies are doing poorly now anyways, but I wonder if it is actually possible to convert these types of actions into gains.

starpilot 6y ago
https://en.wikipedia.org/wiki/Socially_responsible_investing https://en.wikipedia.org/wiki/Socially_responsible_investing I don't think this makes sense in general. It's more effective to trade in whatever is profitable, then donate to causes you care about. Jim Cramer talked about investing in tobacco companies then donating his profits to antismoking charities.
- baddox 6y ago
  Two obvious potential problems come to mind. First, not all types of “damage” and “repair” completely annihilate each other with no lasting effects. Protected areas like national parks are a great example of that. Donating to a charity that plants trees does not just “undo” investments in old-growth logging companies. Secondly, the economies of scale that your tobacco company investments contribute toward may overwhelm the economies of scale that your charity donations contribute toward.
catacombs 6y ago
Not a chance. To Wall Street, social justice, "good morals" and ethics are not profitable.
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AnHonestComment 6y ago
There’s various funds that do. Eg, https://investor.vanguard.com/mutual-funds/profile/overview/vftax https://investor.vanguard.com/mutual-funds/profile/overview/...
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tchaffee 6y ago
> Are there any people trading on companies trading their profitability for moral righteousness? Blackrock controls about $6 trillion in investments. They announced a move to socially responsible investing over two years ago. And it's becoming a common question investors are asking startups: what positive long term impact will you have on society? https://www.cnbc.com/2018/01/23/blackrocks-push-for-social-responsibility-shows-shift-in-companies.html https://www.cnbc.com/2018/01/23/blackrocks-push-for-social-r...
scollet 6y ago
Profit is not a meaningful metric for whether or not a company should exist. When your cash is on the line I'm sure it is very easy to have flexible morals, but making returns on death and oppression is not a world I want to be a part of.
gabagoo 6y ago
markets are organisms, and nature knows nothing of 'morality'- everyone who tries to trade on righteousness vastly underperforms the market

by shiado 6y ago

starpilot 6y ago

https://en.wikipedia.org/wiki/Socially_responsible_investing https://en.wikipedia.org/wiki/Socially_responsible_investing I don't think this makes sense in general. It's more effective to trade in whatever is profitable, then donate to causes you care about. Jim Cramer talked about investing in tobacco companies then donating his profits to antismoking charities.

baddox 6y ago
Two obvious potential problems come to mind. First, not all types of “damage” and “repair” completely annihilate each other with no lasting effects. Protected areas like national parks are a great example of that. Donating to a charity that plants trees does not just “undo” investments in old-growth logging companies. Secondly, the economies of scale that your tobacco company investments contribute toward may overwhelm the economies of scale that your charity donations contribute toward.

catacombs 6y ago

Not a chance. To Wall Street, social justice, "good morals" and ethics are not profitable.

deleted 6y ago
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deleted 6y ago
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AnHonestComment 6y ago

There’s various funds that do. Eg, https://investor.vanguard.com/mutual-funds/profile/overview/vftax https://investor.vanguard.com/mutual-funds/profile/overview/...

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tchaffee 6y ago

> Are there any people trading on companies trading their profitability for moral righteousness? Blackrock controls about $6 trillion in investments. They announced a move to socially responsible investing over two years ago. And it's becoming a common question investors are asking startups: what positive long term impact will you have on society? https://www.cnbc.com/2018/01/23/blackrocks-push-for-social-responsibility-shows-shift-in-companies.html https://www.cnbc.com/2018/01/23/blackrocks-push-for-social-r...

scollet 6y ago

Profit is not a meaningful metric for whether or not a company should exist. When your cash is on the line I'm sure it is very easy to have flexible morals, but making returns on death and oppression is not a world I want to be a part of.

gabagoo 6y ago

markets are organisms, and nature knows nothing of 'morality'- everyone who tries to trade on righteousness vastly underperforms the market