Value Investing <Idea>

08/27/2007

What we are calling "value investing" is called "Socially Responsible" investing by most of the world.

This is not an original idea.  Value investing has been around for 30+ years. 

What we would like to do is model the system effects of value investing.  We see the opportunity to set up a virtuous circle whereby even those who want to ONLY maximize their return have to pay attention to what people value in companies because the value of the company will be determined by more than earnings. 

If enough people start investing with their values, a companies stock price will reflect how well the company meets peoples values in addition to how profitable they are.

One way to encourage this behavior is to make value-type information more readily available.  You could make a simple scale on a variety of values such as:

  • Environmentally friendly
  • How well do they treat their employees
  • How much do they pay their executives Vs their lowest paid employees
  • How addictive are their products
  • Do their products or services enhance peoples lives
Any value that people were interested in could be rated.

 

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