Gyroscopic Investing

tomfoolery wrote: ↑Thu Dec 17, 2020 11:52 pm

MangoMan wrote: ↑Thu Dec 17, 2020 7:32 pm

Pointedstick wrote: ↑Thu Dec 17, 2020 11:51 am Regarding Nike, it's funny because on the left they are reviled for their support of overseas child labor sweatshops. What's a poor little global multibillion dollar corporation to do?

I guess Black Lives Matter more than Asian children's lives according to Nike.

There’s a complex algorithm involved in the victim Olympics. The driving factor currently is how likely the group is to set fire to your house.

pmward wrote: ↑Wed Dec 16, 2020 2:09 pm

MangoMan wrote: ↑Wed Dec 16, 2020 12:15 pm Social justice investing will draw interest until it sorely lags the S&P 500, which it ultimately will. And then only idiots will invest that way.

It's like the restaurant that told customers to pay whatever they wanted, and then went bankrupt in 6 months because they weren't profitable.

Sure the direct ESG funds will likely underperform. But the index funds... the thing they are getting at is an index fund doesn't have to 100% match the index to follow it almost identically. Almost no index funds are perfectly weighted to their index. They can reduce weight on a non "responsible" company a bit and give that weight to a more "responsible" competitor and still track the index, since companies in the same sectors are highly correlated. This means the funds themselves continue to track their benchmarks within the usual small margin of error, however they have created an environment where companies that are more "responsible" get more capital than competitors that are not "responsible", which encourages companies to make changes. It's capitalism doing exactly what it should do. Those that don't like it have the option to not invest in Blackrock ETF's.