Posts

Showing posts with the label ethical investing

Martin Luther King's Philosophy on Investing

Image
Capitalism and Equality  As the civil rights movement expands to include investing and investments, I thought it would be an appropriate time to reflect on Martin Luther King, Jr.'s attitude toward investing. Though it may surprise some, Dr. King was one of capitalism's staunchest proponents. In this respect, his actions were fully consistent with his faith: as he noted in one of his speeches, "Jesus never made a universal indictment against all wealth." What's more, Dr. King's work made capital markets more efficient, as I discuss below.  A Socially Responsible Investor Martin Luther King was more concerned with how wealth was obtained and used. To him, the fact that one owned a Cadillac said nothing about one's faith or about one's character, for that matter. Worshiping the Cadillac, however, did. This certainly made him a socially responsible investor, specifically a values investor. His emphasis on values rested on a concern he expressed many time…

Effective Investing: How to minimize fees and maximize potential return

Image
We coined the term "Effective Investing" to reflect a style of investing that does several things. First, it minimizes fees and costs. Your money should go toward your future, not to a broker or mutual fund company. There are only two ways to accomplish this, one in stock investing and the other in bond investing. Your money should be safe and effective investing means being able to sleep at night.










This means managing and minimizingrisk. There are a limited number of ways to accomplish this, too. Risk is a feature of investing. It is how you get to return. Still, you can rationally minimize risk by taking a few constructive steps.  In the bond or fixed income world, investing in US Government securities is the only way to accomplish this.  In the stock market, the strategy is the polar opposite and can be summarized as "don't put all of your eggs in one basket," in fact, put them in the biggest basket you can find. This means investing in an Index Fund compris…