The Stock-Picking Strategy That Makes Investors Angry

Sustainable and responsible investing, or SRI, is a rapidly growing strategy -- and when framed in moral terms (as an attempt to integrate one's personal ethos into financial choices) it's a topic that generates strong debate.

Ultimately, SRI is simply another investment strategy. Having said that, people's angry resistance to ethical considerations in business is odd.

If you wouldn't set Bangladeshi laborers on fire to make a buck, why wouldn't you consider labor conditions at foreign suppliers when analyzing an investment in J.C. Penney (NYSE: JCP  ) ? On the flip side, why shouldn't you decide to take a look at SolarCity (NASDAQ: SCTY  ) because you care about the environment and believe strongly in renewable energy?

Such considerations should not be the end of your analysis -- but they are a perfectly good starting point as you search for stocks.

Should morality drive your investment decisions?
The Motley Fool recently hosted a Climate Change summit for investors, where the topic of morality and SRI was discussed. Watch this video to hear more.

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  • Report this Comment On June 17, 2013, at 1:58 PM, tundrowalker wrote:

    Everyone has their own strategies. But, what irks me is when folks do day-trading stock flipping and call it "investing". That's not really investing. Investing is putting money into a company in order to watch it grow over time. Investing was usually b/c, as you said, you believed in a product, not just in the money it would return. I feel long-term investors are truly investing. They put money in to help a company grow in order to get a pay-off in the long-run. Folks playing shorts and things are just looking for a quick money grab. Likewise, investing in "feel good" things, like Solar (as your example) is tricky. Do I beleive in Solar? Yes. But, I don't like how it was propped up with gov't subsidaries for so long. Now that the gov't is pulling back on subsidaries, the solar stocks have all tanked quite a bit. I believe in products supporting themselves. If tax payers have to prop it up, then it's not ready to take off yet.

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