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> Why is it not the pension managers responsibility to make sure his clients are not invested in these things if there is financial risk? That's the problem, t

> Why is it not the pension managers responsibility to make sure his clients are not invested in these things if there is financial risk? That's the problem, there is no financial risk, check out Wells Fargo stock price. These are social problems these companies are spinning off, any financial problems are externalized. > I love how people think you can outsource decision making to absolve yourself of responsibility. Real "and yet you participate in society" vibes. Can you respond with a detailed plan for how my 80 year old father can get his pension plan to divest itself of misbehaving companies. Be specific.

lotsofpulp 4y ago
>there is no financial risk, check out Wells Fargo stock price. A Wells Fargo stock holder would have lost out on ~70% of returns over the last 5 years compared to a relatively riskless investment in sp500. https://g.co/finance/WFC:NYSE?window=5Y&comparison=NYSEARCA%3AVOO%2CNYSE%3ABAC%2CNYSE%3AJPM https://g.co/finance/WFC:NYSE?window=5Y&comparison=NYSEARCA%... Total return for past 10 years is 4.79% per year. https://dqydj.com/stock-return-calculator/ https://dqydj.com/stock-return-calculator/ JPM 10 year return is is 15% and BAC is 13%.
twelve40 4y ago
When you sign up for someone (like a pension plan, and yes, it's a choice) to manage your money, you can't pick and choose individual stock. Just like when you go to a restaurant, you can't order them to go and buy a different kind of carrots because you have a major problem with what kind of carrots they use. However, money managers do have their metrics they are held up to, and if they generally don't perform, they get fired. At some point, a decision was made to work for an organization that compensates their employees via a pension plan vs. for example taking a salary and picking individual stocks personally, that is presumably a free will decision just like when I choose to get my food at a restaurant, I give up my option of picking every single ingredient in my food.

lotsofpulp 4y ago

>there is no financial risk, check out Wells Fargo stock price. A Wells Fargo stock holder would have lost out on ~70% of returns over the last 5 years compared to a relatively riskless investment in sp500. https://g.co/finance/WFC:NYSE?window=5Y&comparison=NYSEARCA%3AVOO%2CNYSE%3ABAC%2CNYSE%3AJPM https://g.co/finance/WFC:NYSE?window=5Y&comparison=NYSEARCA%... Total return for past 10 years is 4.79% per year. https://dqydj.com/stock-return-calculator/ https://dqydj.com/stock-return-calculator/ JPM 10 year return is is 15% and BAC is 13%.

twelve40 4y ago

When you sign up for someone (like a pension plan, and yes, it's a choice) to manage your money, you can't pick and choose individual stock. Just like when you go to a restaurant, you can't order them to go and buy a different kind of carrots because you have a major problem with what kind of carrots they use. However, money managers do have their metrics they are held up to, and if they generally don't perform, they get fired. At some point, a decision was made to work for an organization that compensates their employees via a pension plan vs. for example taking a salary and picking individual stocks personally, that is presumably a free will decision just like when I choose to get my food at a restaurant, I give up my option of picking every single ingredient in my food.