You found your way onto this page so we are going to assume you fall into one of two camps when it comes to the question of “What is Values Based Investing?”
Camp #1: You have never heard of the idea, or you have heard the term but don’t really understand what it means, but you want to learn more. If this is you, we are glad you are here and we hope you find the information below helpful and actionable.
Camp #2: You are familiar with the concept of values based investing and it intrigues you. You have read an article or two, maybe even talked about it with your spouse or a friend, but you still have more questions. If this is you, welcome and we hope you learn something new.
First off, the concept of making decisions based on your values or your beliefs is not new. This is something people have been doing for thousands of years. Today we do it when we move to a new neighborhood or city and we want to make sure the way the school district runs their schools aligns with how we want our kids to be educated. Our deepest and closest friends almost always have similar values and beliefs and we choose to spend the majority of our time with those we feel the most connected and aligned to. We do it with the movies we go see, or the music we choose to listen to. Due to the popularity of social media, companies, celebrities and athletes can now voice their support, or lack thereof, for any kind of cause or issue. This transparency has made it much easier for us to choose, follow, support, and purchase the products/services/brands that we feel most aligned with.
Values Based Investing doesn’t require any changes to how you already think or what you place your importance in. Simply put, it is a way for you to make educated decisions on where your investment dollars are being spent and who they might be supporting.
Let’s look at this hypothetical question for a minute. Say you are an ardent Pro-Life supporter. You attend the rallies, you volunteer at the local non-profit clinic that educates soon-to-be Moms on their options to keep their precious babies. Now let’s say someone offered you an extra 20% return on your investment portfolio, but you had to give half of those profits to a local abortion clinic to get it. Would you do it? If you answered “yes” before you even finished reading the question, then Values Based Investing might not be for you. If however, this question gave you pause, and you understood and could relate to the decision that the hypothetical Pro-Life advocate had to make, then we think you should keep reading.
Companies that don’t care about how you profit, but just that you profit, think the idea of Values Based Investing is crazy. They are stuck in the mindset that cash is king and you need to “go get yours” no matter the cost. This can be a very selfish and destructive way to think. Now let’s be clear, we care about your return on investment as much as anyone. The difference is that we feel very strongly that there are good and bad ways to make a profit.
With Values Based Investing from Devoted Capital, we will work with you to develop an investment roadmap that continues to align with your financial goals without sacrificing your values.
Remember, traditional investing equals blind investing, but if you still have questions or want to learn more about our process please contact us below or check out our page on stewardship investing.