What is Values-based Investing?
Recently, we have experienced a surge in the popularity of values-based investing, as individuals increasingly seek to align their financial decisions with their beliefs and personal interests.
The concept has several different labels, such as Ethical Investing, Purpose-driven Investing, Impact Investing, Activist Investing, Faith-based Investing and more. Though each of the above mentioned do focus on different aspects, they all emphasize a certain approach to investing other than just a return on investment.
With this as our foundation, let’s delve into the concept of values-based investing. We’ll bring to light some key topics, and provide you with the basic information you need to determine whether it may be right for you.
You’re unique. Invest that way.
Let’s begin with the concept of integrity. If living a life of integrity is important to you will experience a values-based approach can be very rewarding.
Some investors such as Activist investors seek to shape the world. By investing and or supporting companies that align with their beliefs that can deliver real change.
However it’s goes even deeper than what we have covered so far. When you purchase stock in a company you are an owner of that company. Does the company you own align with your values?
In addition, when you invest in a bond, you are now a lender to the company or entity. Does the entity you are lending your hard earned money to align with your values?
On a positive note. When your investments align with your values, you’re living a life of integrity. What many people do not know is how rewarding a fully integrated life can be. When you integrate your personal values into your financial and investment life your decision making will improve.
Integrity Investing is transformative
Peter Lynch, a well known successful investor, is talked about a great deal. Many people discuss his success and his strategies that aided in his success. His number one tip is to know and use your “Personal Edge.”
Think about that for a moment. Your Core beliefs, Ethics, Faith, Values and Purpose, along with your life experience and education all help to make up your personal edge.
Values-based investing isn’t just some buzz word, It’s a way to experience greater reward by living a life without duplicity and putting your hard earned dollars to work in areas that truly matter to you.