Thinking “long term” is commonly offered as the solution to most investment challenges.
And it should be. Companies encounter challenges, and a searching, forward-looking analysis has a way of placing them into proper context that is not easily replicated.
But the long-term outlook is not rosy. The extractive practices of many major corporations now pose an existential threat to life on earth. Even the most inattentive observer has seen amoral executives pay lip service to sustainability while they siphon out the earth’s life force to satisfy short-term profit projections.
It’s not exactly sustainable.
And that’s before you consider the systematic cruelty embedded in many of these enterprises. Intelligent animals capable of love and friendship instead lead lives of profound desperation in service to a public hungry for their meat. Others are bred to be sick, stuck with needles, and subjected to untold horrors in the name of medical testing.
The stock market’s uniquely myopic millieu barely distinguishes between these stains on our collective soul and innovative businesses that are directly aligned with a good version of the future. I started Invest Vegan because there are a million reasons why it ought to.
Here are three that are particularly relevant today:
- Ethics are disruptive and delightful. The companies that thrive under our scrutiny are often models of mission-driven innovation and financial sustainability. They fund farms, enable recycling at enterprise scale, and help far-flung populations access the internet. They help people harness the power of technology to see clearly, buy homes, and get braces. They help us feel beautiful without causing pain. We’ll be sharing these stories here in detail over the coming few months, and the positive energy they radiate is worth the price of admission.
- The drama of business as usual isn’t worth it. It’s hard enough to think happy thoughts about your financial future without worrying about what the companies in your index fund are really up to and whether they’ll successfully adapt to our new reality. Our continuously updated exclusion criteria creates a “bright line” which eliminates at least 256 constituents of the S&P 500 and more than 180 of the “sustainable” KLD 400 from consideration. This doesn’t protect us from disappointment or adverse market movements, but it does usefully radicalize the set of companies we consider and materially mitigate our exposure to bold-face risks like climate change, workplace abuses, and anti-consumer practices.
- Externalized costs are coming home to roost. Companies have gotten away with harmful practices by separating themselves from the consequences of their actions. But new regulatory initiatives like carbon pricing will force firms to deal with a truer cost of their operations. And some antique business models may not survive these pro-social regulatory actions. Given this, any fiduciary must be prepared to undertake a comprehensive, continuous, and evidence-based analysis of their clients’ alignment with the future. Our strategy is built on exactly this sort of analysis.
Investing this way won’t save the world. That will take muscular regulation, a profound shift in social attitude, and massive investments in research and development. But it will help us find a sense of optimism rooted in the conviction that change is possible, scalable, and profitable.
There is much more to say, but right now it’s time to do something. Invest Vegan is open for business! And regardless of how wealthy you are, we would be delighted to welcome you as a client. Please click below to schedule a time to discuss any aspect of this that may be of interest to you, or go ahead and fill out our client intake questionnaire to get started.
