Monday, June 9, 2014

Investing in companies that are socially and environmentally considerate(SEC)

1 Trillion dollars!!!...is invested in companies that are socially and environmentally considerate.  Many funds and Investment managers specialize in this type of investment and spend the time to analyze how considerate companies might be.  There are many criteria that are published by these Investment Managers, some are standard across the board while some managers differentiate themselves by digging a little deeper.  

At some level we are all investment managers.  We invest in our own well being (brushing our teeth, exercising, saving money, eating and sleeping well...etc.) all day and every day, and just like money managers some of us are more successful then others.  Lets take our own intuitive experience and create a fund of companies that are SEC.  Here are some thoughts:

- Philanthropy is at least 5% of annual after tax profit

- Executive compensation is the lowest in that specific industry

- Lowest employee turnover within an industry

- Products that enhance customers lives

- High quality product - would we use it?!

- High customer service ratings

- Low climate and environmental footprint

- Long term (>10 years) financial goals

- Long term company strategy (>100 years)

 

Lets start a fund!!!

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