Bloomberg: Don’t kick that hippie off the investment committee
A recent piece in BloombergBusiness caught our eye: Giving Hippies Key to Portfolio is Not Such a Bad Idea After All. Not to say we told you so, but have you heard the one about Hal, Guatemalan shorts, and phone trades back in the day? Indeed, champions of SRI have always had reassuring results to point to, but in recent months, we’re no longer shouting against the roar of business as usual’s river of denial. A series of long-term trends reports have all come to similar conclusions: companies that embrace environmental, social, and governance (ESG) considerations outperform their more traditional peers. The chart at the top of this post is a good sample, showing two different strategies for choosing more ESG-engaged companies; over the past 7-8 years, doing so has outperformed average returns by a cumulative 12-24%. While we appreciated Bloomberg’s decision to publish our 1999 book, Investing With Your Values, we’re even more glad to see them, along with Morgan Stanley and the Harvard Business School, getting on the bus.