The first requirement for a good investment is that the company should be filling a need in society or in the marketplace.
Filling a need creates demand for the company’s products and services and ultimately allows the company an opportunity to achieve a sustainable profit.
Investors, of course, are looking for positive return. You want to get your money back and then some.
The final requirement: when the company is able to identify and meet a need, it should bless mankind.
Think about all of the ways that you interact with businesses each day and every day—whether it was the technology company who made your alarm clock, the farmers who helped make your breakfast, or the engineers who designed and built the car you drove today. The institution of business has a unique ability to meet needs, create true value and positively impact the world.
Most investments are probably in mutual funds or other pooled investment products where you might not know what companies you’re invested in. Mutual funds can sometimes feel like a mysterious black box. We put money in, not really knowing what’s inside, hoping that it kicks out a positive return.
Take the S&P 500 Index for example. Each square represents one of the five hundred largest companies in America. The red squares show the companies that make money from products or services that do not bless mankind but instead cause harm. In this example, there are 38 companies in the S&P 500 Index involved in abortion, pornography, tobacco, or gambling.
We can help you clarify what matters most to you and analyze your investments and see if they align. Then, we can recommend practical next steps to help you align your values and your investments.
Our unique onboarding process allows us to tailor a plan to your unique money style and values. Read more about how we begin client relationships with the end in mind.