Investing is about risk-taking. It is about participating in the fruits of innovation and change through ownership or partial ownership of businesses. To me the only way to succeed is to invest in the future. That means with companies that not only afraid of change but are making change happen.
I think humanity will always try to find ways to improve itself and I believe the future is going to be “greener”, cleaner, it has to be as we evolve. Investing in companies that voluntarily adopt the ways of the future now is actually good practice, and will yield better profits for investors. Imagine investing in cotton farms during the times when slavery was legal. Investing in farms that did not use slaves would have been “responsible investing” and would have been seen as alternative investing, not mainstream, people would laugh at you, etc, etc. But in the end slavery was abolished and the farms that relied on free/cheap labor would disappear… The same can be said today of all kinds of businesses that violate human rights, animal rights (the food business, pharma and biotech, cosmetics, fashion, etc. etc.), pollute (fossil fuels, mining, coal power utilities, etc.)
As an investment manager, managing portfolios for family offices, business owners and professionals with a minimum portfolio value of 1 million, using individual stocks, rather than packaged SRI investment products, I have been able to deliver better than market returns since 2003 using my own, very strict SRI criteria, much stricter than most SRI funds would utilize.
SRI is the way of the future!
Constantine Lycos, M.Phil (Oxford), CFA
President, Lycos Asset Management Inc.