Meir Statman : Value-Based Investing : StarTribune
Meir Statman, Glenn Klimek Professor of Finance, was quoted in aStarTribune article about the ‘growing embrace of socially responsible investing, also known as value-based, sustainable, and impact investing.’
An excerpt from the article:
It wasn’t all that long ago — the ’80s and ’90s — that much of Wall Street dismissed the concept of building a portfolio that reflected personal values and beliefs. The standard rap was that the strategy would cut into returns. The standard recommendation for investors who abhorred, say, smoking or environmental degradation was to pick investments that yielded the highest potential return. You could always donate your profits to the cause.
As Meir Statman, finance professor at Santa Clara University put it, this commonplace personal finance advice was “fundamentally flawed. In fact, it’s akin to suggesting to an Orthodox Jew that he forgo kosher food for cheaper nonkosher food and donate the savings to his synagogue.” It’s not going to happen.
Find the full article here»
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