Rule #5 in my personal rules of investing is to help others. This is the entire raison d'etre of my Chart of the Day after all. It is also why I decided to get into teaching
However, it extends beyond that and there is something for all of us to take from it. It means to help others in your workplace too. If you help new employees learn & get up to speed, others will see that and help your career advance too
It also extends to the role of sales and fund-raising. In sales, if you make your client look smarter by helping them get information they need, they will pay it back in spades. Ditto if you help someone at an asset owner you are asking for money from
There is even a broader goal too. I teach a class this semester on ESG Investing. I follow the CFA Institute certificate in ESG Investing curriculum. There is a great deal of debate & politicism on the topic now
For example, Utah State Treasurer Marlo Oaks claimed that ESG investing is a part of “Satan’s plan.” Even Elon Musk is no fan, having tweeted: “ESG is the devil.”
ESG Investing, straight from the curriculum, focuses on the UN Sustainable Development Goals in the chart today. They are such controversial topics such as No Poverty, Zero Hunger, Quality Education, Gender Equality, and Clean Water & Sanitation. Satanic? C'mon
The Treasurer doubles down: "ESG promotes and implements policies through private businesses that could be adopted through a legislative process,” Oaks said in an interview last year.
It is now a BAD thing that we want the private mkt to find solutions to issues? We are at the point where we can only do things by legislation? Even though Congress seems to have abdicated all power to the Executive Branch?
Chapter after chapter, podcast after podcast in my class we hear people speak about how action led by consumers, employees and companies has more lasting power. If it needs to be mandated, people only go there begrudgingly & it is less effective
Finally, please know ESG Investing is NOT exclusionary. There are some investors that exclude stocks or sectors but this is NOT ESG Investing. ESG Investor integrate these goals into their process. The goal of CFA Institute is to get this type of integration to be standard. ESG is NOT the Socially Repsonsible Investing (SRI) of the 80s.
ESG is also NOT just environment. Look at the goals. 5 of the 17 are environmental. There are far more social goals like No Poverty and Income Inequality. ESG is not green or woke. It ties back to Natural Law that has guided society for centuries
The bottom line goal? Help others. Controversial? I don't think so
#markets #investing #esginvesting #unsdg