Valtrend - Butler Business Valuation

Social Responsible Investing

I understand people’s wishes to do this.  However, in a capitalist society, I recommend investors put their money where they think they will earn the best return (given their risk tolerance).  That is where individual investors will best serve society since, in theory, they will have more money to put to work in causes that they believe in.  After all, a corporation’s goal is not (necessarily) to do good things, but rather to earn profits, which can ultimately be returned to its investors in the form of higher dividends and/or higher stock prices.  Then, an individual will have more money to contribute to their own charities, instead of indirectly through a socially-responsible company, who may not be making optimal financial decisions.

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