Investing in companies that are environmentally conscious, promote diversity, oppose product testing on animals, or promote women's leadership are examples of social investing.
One of the lessons I have learned over the years is that you can still practice socially responsible investing without being guided 100% by your emotions. If you feel passionate about a company AND your systematic approach supports it, then by all means it could definitely be the right company or fund for you to invest in.
On the flip side, if your systematic approach shows a company is a good stock to invest in, but your gut instinct tells you not to do it, as I told one of my clients a few months ago, then by all means, follow your instinct. In fact, even though it's not required for every investor, there is absolutely nothing wrong with adding "Gut Check" as a step to your systematic approach.
Many investors are detached from the companies they invest in. Nothing right or wrong about it.. no judgment here. But there are those investors who care about the social impact of companies and choose their investments accordingly. The great news is that either way, each investor can still use a systematic approach.
All the best to you on your financial journey,
Aneshia
Comments