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.
> 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?
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.
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.
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.
