No snark - just curious what it is I have displayed that classes this as ethical investing? I ask because I am indeed a believer in socially responsible investing. RobOriginally Posted by ToomuchStuff
No snark - just curious what it is I have displayed that classes this as ethical investing? I ask because I am indeed a believer in socially responsible investing. Rob
Well, it's probably not as environmentally deleterious as crypto.
Your not buying a mutual fund, which spreads the risk. Buying into one company, when it isn't a benefit (the old days when my father worked for IBM, stock options), IMHE tends to be either insider trading, gambling (day trading), or ethical investing (supporting a company you believe in).
I long ago decided I wasn’t smart enough to consistently trade individual stocks profitably. I just buy index funds and take what the market gives me. I would think it would be even trickier if I had to superimpose some idiosyncratic ethical template over my decisions.
My one big dive into investing in individual stocks was about 2 1/2 years ago. I had a chunk of change from my annual bonus that I normally would have put into an index fund. But since we were in the early days of a viral pandemic and the stock market had just cratered I thought to myself ‘JP, what companies might profit from a pandemic?’ And the answer I came up with was medical testing companies. So I took that money and split it between Labcorp and Quest diagnostics stock. Some months later the stock market had rebounded but those stocks had not exploded up. It turned out that neither company was interested in ramping up covid testing to develop a new stream of income. Perhaps a smarter investor would have thought of that before investing and would have instead found some scrappy startup(s) that would also likely profit from a pandemic. Maybe one that was in the business of developing new vaccinations that hadn’t yet been tested in the real world but had the potential of becoming a brand known by people worldwide…. In any case, I sold labcorp and quest at the end of 2020 once they had both fully recovered from the earlier stock meltdown. I did slightly better than any of the index funds I’m invested in but probably not enough to make the added risk worth it.
Update: So far I'm really impressed with this discount brokerage and I now own shares of this company I believe in. Rob
There are currently 1 users browsing this thread. (0 members and 1 guests)
Posting Permissions
Reply With Quote