Social Investing - burst 2
Are you today? Great how are you? I am excellent and I am willing today to talk a subject that we were going to approach a few podcasts ago. More funding catching up with it. It's all about social investing. Yeah there's a term out there called social investing and you know. This really is an indicator of how people's have good hearts. They want their money to go to something or two values they have value could also call it values investing France right values something. Maybe it's clean air clean water. They don't want him. Invest in companies that don't adhere to certain policies or procedures or regulations. They want their money to go to companies. That will advocate for certain things or not advocate for certain things and the these are good. This shows that that investors have a heart. Yes meaning idea not with this beat like money that for example of both people passed away or something that nobody left to leave it to that. What you're saying here. No no no. These are mutual funds themselves out there that actually say we are have a social conscience Gajah. Here's the problem with it number. One your social agenda might be different than mine right. There's a whole company called that is Catholic investing. You know that that goes along with you. Know anti-abortion pro-life so that might not be your agenda. Might be somebody else's agenda and maybe you want to save the whales with somebody else is all about clean air and clean water or whatever. The problem with the idea is a number of things number one. You cannot really judge or control whether a company that you're investing in it. I remember when you invest you are an owner of stock in that company so company XYZ puts it out there that they are social values that they have a social mindedness. Now it's really easy for a company to sort of print up a real nice statement. Put Out something that makes them look really great. Maybe they do follow some Nice Regulations. That are make them a so called green thing. Yeah well we called Green Company or something. Okay but how are you going to be able to judge whether or not that company is actually adhering to those principles. Would you could verify some. How are you going to verify? It's absolutely you know it's very very difficult. So you're expecting your mutual fund manager or someone whoever puts this together to not only find companies that are going to make you money but also are adhering to the very values that you say you are interested in. It doesn't work real well right now. I say this is the way I would approach it and this is purely might take I say. Let the market make you money. And then you take whatever. Par Portion of your earnings whenever portion of your income derives from that investment and allocated to causes and two things that you know are doing the job you want done. Yes let's say you have the Hartford in accordance with your values. Let's say you have a heart for education. Yes maybe you ought to invest your own dollars made from you know good. Investing good sound principles academic principles. And now you've made some money you're doing well and you know you're not trying to control something you can't control now you can control it now you can write the check and you can write it to the individual or to the institution that represents your values your heart and promote and create in the universe of the world your values. You can donate it to these things. Take a tax deduction if it's a five. Oh One C. Three that is a much more reasonable way to go about. I think to go about this whole issue. Oh trying to promote goodness in the world does make sense because if you just like you said how you going to verify a company's really doing they could get lip service to it but there's no guarantee they're actually think people give a lot of lip service to these days. Do I wouldn't trust that idea worth any. No it's going directly to a lot of causes out there. That are not well run. You don't WanNa be even if you've got a good cause but they're not well run. They pay their administrative people. Come up with the idea whole lots of money. Maybe ten percent of it goes to the actual thing right could be going to salaries somebody getting it goes to their pocketbook. Instead of what you want it to so you can check those things out. You can check that out. There is a gatekeeper. About on charitable concerns. For example may rate these organizations like rotary is one of the highest. I happen to know that simply because I've been a Rotarians for trade almost thirty years now and I know that Rotary Foundation is. You know really well regarded as high high ratings. They use very low. The administrative 'cause most of their the work is done by volunteers and rotarians themselves and so they keep their administrative cost really low. And so you know your your dollars are going to work right where you want it to. You can even be more specific than just the Rotary Foundation. You can be very specific to water projects that are being done by rotary water. Projects are being done in clean air clean water and clear. Yeah exactly projects that are being done in specific communities even communities around the world if you WanNa do that and so you can get really specific in with those kinds of good values. I'm not discouraging people from using their money for good things. I have a passion for that. Actually because one of our sayings in our company is that when good people have money good people do good things to do yes agree. When bear people have money bad people do bad things and we know that through to you saw people blowing up buildings in New York City and Jackley nine eleven so now it's imperative that we as investors really do do things that are beyond just our own satisfaction our own well-being because that's what creates a better world and many many of my People who invest with us are have those good hearts they tied they give great causes they are building a better world. It's one of the joys truly. It is a joy of when you have built a you know a life that has been blessed and Europe Diligent. And you work hard and then you can. Plus someone is still a country that I think drew rises to the whatever. There's a tragedy in the world where the first ones to show up to help. People don't have the statistics right at my fingertips. Sometimes our conversations are so fluid that we kind of go off on tangents but that is a great. I'm sure anybody out there. You could Google this. Us percentage of giving or what how many billion millions and millions of dollars that we give every year to really good causes and there's another old saying that goes something along these lines the only thing for evil to flourish or to win is for good men or women people. Good people do nothing to do. Nothing is I've heard that before. And so I am all for people to take their resources and that could be financial resources. That could be time resources. That could be influence in the community. It could be your prayers. It could be many many things your time energy. And and what do they call that? Your time treasuring talent. I think today to there's a lot more companies that are play beautiful music and you go with your beautiful music to different places and played for people don't get paid and just do it to go to a fundraising events places were there. Yeah but today in this in this day and age Alana companies are recognizing the social consciousness. Yes and trying to be a little more observant more in that bad. I'm just saying don't don't make that your major investing platform if you do. That could be new really talking about REALLY GAMBLING BECAUSE UTAH. Stock picking you know. You're very very narrowly inviting that world. And you can't control it. We live we live in a country. I think we had. If you look back to the seventies we had this Clean Air Clean Act. Oh yeah the. Us has been very good about changing your tablets at that point. A lot of countries around the globe are not in that world. They're a little bit more chaigneau at being own. Yeah yeah absolutely absolutely so my take and you can disagree with the if you want you know. Everyone's entitled to their opinion. The my take on this whole idea of social investing is do socially do your conscience live your values absolutely put your money where your mouth is absolutely but invest globally and diversify according to academic principles make the most you can in the market based on your risk tolerance and. Don't play some kind of game with it. You'RE GONNA lose and then it could affect you badly and therefore you end up to your ruin it could. Actually you know yeah. You don't actually thwart your ability to actually do some good in the world to try to do good. You don't want to shoot yourself in the foot either. Yeah absolutely so. We shy away from funds that you know talk about fat in because they're all actively managed they're trying to stop pick market time. They're all they're not the right type of thing. Some companies are jumping on that bandwagon. Nike being one of them that are trying to position itself as thinking. More of the millennial market. That's coming up the generation Z. And forget about our old customers to take a whole new tude about trying to be. Which isn't what I would say. Social Justice social no investing. That's not at all not at all. I think people get this and I I really am glad I know what it is because I was a little bit when you mentioned it. I wasn't sure how this worked. And definitely when you leave this world if you are so inclined and if you are so blessed what you were talking about earlier yeah do bless the world with something you know by you know gifting to charities and institutions that. Do a good job with you the values you hold on. What I see is being a radio talk. Show interviewing a lot of small business. People lineal business people have a social consciousness. They they think everything they they make something and as they sell it they want because you bought it one of these will go to a third world country that is deprived the so they're practicing social consciousness that way. That's become very relevant today. I'm quite intrigued with. What is the bracelet clean? The oceans are cleaning up the Osho. Yes love what they're doing and you know why not. It's a beautiful concept. They've done a lot of good. Yeah I mean that's one that I think I'd have to look a little more deeply into it to see whether or not it's well run. You know they're efficient with their. You WanNa be good exactly talking about. Jim Is Stewardship. That's an old fashioned word. But it's really is important. We need to be good stewards of our time. Talent and treasure. And that's what it's all about. So we're going to wrap this up and beyond to the next one. So stay with US folks and if you have any questions you all you have to do is go to Veritas investing dot com and let us know all right thanks Martin..