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Do you want to invest in businesses that aren't sustainable or have bad governance? I think the idea behind ESG is that it gives you an insight into things th
by bryanlarsen 3y ago
Do you want to invest in businesses that aren't sustainable or have bad governance? I think the idea behind ESG is that it gives you an insight into things that make a particular stock a bad long-term investment.
- incrudible 3y agoWhy would the proxies that ESG uses to determine "bad governance" or "unsustainability" be any better than the ones the market comes up all by itself? Moreover, voluntarily internalizing externalities such CO2/environmental costs (beyond what is mandated by regulation) is likely to be a detriment to profitability, which is why the market can't solve that on its own in the first place.
- bryanlarsen 3y agoESG consultants have more access to more information than is available to investors.
- blitzar 3y agoWhy would the proxies used to determine "S&P 500 Tech Index" outperform the "S&P 500" any better than the ones the market comes up all by itself?