Welcome again to our blog on investment and stock market strategies. We’ve started a series on the differences of socially responsible investing (SRI) and sin stocks, and with this entry underway we’re going to take a look at these differences closely and see what each school has to offer!
Supporters Of Socially Responsible Investing
The group that supports socially responsible investing believes in more than just good values; often, they see the good values that a company embraces as the basis for their success. It’s in their interest to ensure that their stocks are placed where profit is achieved in a sensible and dependable manner, and the strategy of SRI delivers on this for them.
Companies enforcing good values are often well-managed due to the fact that the fundamental principles of the company rest on firm beliefs in honest, safe, and acceptable practices.
Supporters Of Sin Stocks
The boys (and girls) behind sin stocks maintain the belief that socially responsible investing is cowardly rubbish. They argue the idea that those who support SRI are passing up the best opportunities.
Those for this notion can be found investing in companies that deliver highly desired products in industries that are built on unyielding fundamentals.
These investors judge their stocks simply by the quality of their yields and nothing else. A company that pursues the greatest consumer demand and makes riches off it is essentially what any person who prefers sin stocks really looks for.
The benefits of each camp and their disadvantages have to be weighed carefully before making an investment. It may sound like a good idea to invest in either of them, but there are some aspects of socially responsible investing and sin stocks that make them very competitive in terms of earning your best interest.
In the next entry, we’ll be looking at these camps carefully and explaining how they perform. Thanks for reading, and keep checking back often for more down to earth investment information!
Sean Rasmussen
The Bullhunters Guide
Universal Wealth Creation © 2004 – 2010
{ 4 comments… read them below or add one }
This is a really interesting and thought provoking little series – information that I haven’t seen highlighted much before – although, I admit I don’t read in areas where it is likely discussed.
It would be good to see more of it brought to the fore in the general media and community news and so on.
I meant to add in my previous comment, that those who prefer sin stocks would find the words ’socially responsible’ anathema to more than just their inveestments.
It reminds me of the Demartinis story Sean relates in http://www.seanrasmussen.com/sean-rasmussen/success-loves-wealth/comment-page-1/ This would ring bells with the sin camp I suspect
Hi Sean
We will never be able to prevent sin stocks or stop people investing in them. Greed is often a more powerful emotion than need.
What we can do is be conscious about our decision making and ask ourselves, by making this decision, am I harming anyone or anything directly or indirectly?
If the answer is yes, you know what needs to be done.
Hi Sean,
I think it comes down to if you can live with yourself knowing that you’ve bought stock in a company where people or animals are hurt. It’s not for me. I’m into socially responsible investing.
It’s important to honour your values and what you give out to the universe; you’ll get back. I don’t care how much profit the sin stocks make.