Localfund.com - All about Fund and Investment
*Home>>>Personal Investment

In what ways do personal values influence the choice of investment?


Give some examples? please!

There are various 'green', 'socially conscious' or 'virtuous' funds that you can invest in that only buy stocks in companies that meet those criteria. These would all be modern examples of personal values influencing their investments.

However, throughout history, people have invested in businesses or enterprises that in addition to pecuniary benefits would provide the psychic profits associated with overtly helping humanity.

In modern times, the constant talk from businesses about "corporate social responsibility" (by which they mean neither their actual responsibility to maximise shareholder wealth nor their social benefit of providing goods and services that the public demand) is a sign of the popular demand from investors for companies to appear to share the social values of the public.

Stepping away from the 'social' aspect of values, there is another side to personal values and investing. When older people invest in apparently safer, blue chip companies, stodgy-looking mutual funds, and T-bills, they are expressing their personal value of low-risk capital preservation. When younger, more risk-seeking individuals buy into early-stage high growth companies and complex derivatives, they are expressing their personal value of quick and substantial profits together with higher risk.

Companies consider their likely investors when they structure their offerings (riskier companies will make more use of common shares while safer companies might be more inclined to issue debt instruments).

If you want to make money, then focus on company business prospect only. If you want to feel good about yourself and money is no object, then buy stocks in companies you share values with. It is that simple...you get your kick anyway you like but you may not make money though.

Tags
  Profitable Investments   Private Investment   Private Equity   Private Capital   Personal Investment   Pension Fund   Pecunix   Online Investment
Related information
  • What are the Finance and investment columns you like and regularly follow?

    I read a lot of stuff on Yahoo Finance - they have some good articles and a bunch of "celebrity" writers like Suze Orman and David Bach. I also read M S N Money articles - same sort of t...

  • Has anyone used lomax milton loan investment. Please let me know. I am trying to get a personal loan. Thakk yo

    You realize that Lomax and Milton are the main characters in "The Devil's Advocate", don't you? Try ...

  • What is the difference between property valuation, property valuation analysis and property investment analysi

    Sounds like you answered your own question despite your grammar. Valuation is the process of determining VALUE. Property valuation analysis is the process of valuation. Property investme...

  • How can I state on my resume that I took time off to manage my personal real estate investments?

    I'd state it in a similar way as you stated it for this forum. <date> - <date> Managed personal real estate investments in Chicago and New Jersey. Follow up with a short blu...

  • What is the best way to begin learning about personal finance and investments?

    Get involved and hands on. In order to learn faster and get a hang of it, open a trading account, read personal finance and investment journal more often. Choose an industry that you can unde...

  • Personal income is most likely to exceed national income: (answers included)?

    I would also say during a period of recession or depression because the government will spend more to stimulate economy, which would then lead to a budget deficit situation.

    ...
  • Is interest on investments treated the same as wages when it comes to personal income taxes?

    Interest income is taxed as ordinary income at your regular tax rate. Dividend income is taxed at a maximum of 15%.

    ...
  • How to start Housong loan DSA, Personal loan DSA? Whom to approach? Initial investments? Requirements?

    to become DSA, contact bank etc. Initial investment is very low. Proof of address, education, income etc. required. Also contact Tax Laws Consultant for PAN, ITR of clients. U can write letters ...

  •  

    Categories--Copyright/IP Policy--Contact Webmaster