Seeking Alpha

Dominick Lombardo's  Instablog

Dominick Lombardo
Send Message
Dominick Lombardo, CFA; received his MBA in Management and Finance, and is certified by the CFA Institute. He later received a diploma (Credit Analysis) from New York University. Dominic had received the Series 7 and 63 certification from FINRA when he was a small-cap analyst and economics... More
My company:
Socially Responsible Investing
My blog:
Socially Responsible Investing (SRI)
View Dominick Lombardo's Instablogs on:
  • SRI Book Review: INVESTING FOR CHANGE

     

    INVESTING FOR CHANGE:  Profit from Responsible Investment

    by Augustin Landier, Vinay B. Nair

    copyright: 2009, Oxford University Press

     

    Just started reading Investing For Change - actually, just finished reading it too.  I was drawn to this book for a few reasons:

    • The book is a quick read, but the authors have a substantial body of knowledge to pull from.
    • Authors have "hands on" experience in the investment management business, and they aren't just theorists
    • Back of the book has an Appendix and, several pages of biographies for its footnotes.

     

    Best For:

    • Individual investors (uses little math)
    • Investment professionals (though limited in scope)

     

     What I liked:

    • I liked the historical background of SRI and the way the authors tied this with global investing trends (this info is difficult to synthesize from the gobs of texts on the Internet).

     

    What I didn't like:

    • The last chapter was, to put it simply, confusing, complex and poorly written.

     

    Biggest Surprises:

    • Hadn't realized how pivotal SRI was towards ending apartheid in South Africa.
    • Increased Self-Awareness: hadn't realized how aligning ones values w/ investments would make oneself more authentic (as in Existentialist Philosophy).
      • Authenticity is the degree to which one is true to one's own personality, or character, despite outside influences.

     

     

     

     

    Our Notes:

    The authors use sharp analogies to grapple around an investing concept that could be confusing not only for novice investors but experts alike.  Today, professional pension fund managers are battling their consciences to determine whether SRI is even legal under ERISA (Employee Retirement Income Security Act of 1974) and the infamous Prudent Man Rule.

     

    While superficially simplistic, the authors' intellectual curiosity shine with their pragmatic questioning of Socially Responsible Investing.

     

    They ask, for example, "Is it really possible to express our moral values through our investments?" 

    • "Does SRI imply taking more financial risks"
    • "Does SRI force less virtuous companies to improve their behavior?"

    One of my favorite analogies utilized was describing how the motives for various responsible investors are different.  The authors compare the different motives for vegetarians with that of SRI.  For example, some vegetarians are motivated by health reasons, others do not want to be accomplices in the killing of animals.

     

    Similarly, some investors avoid "sin stocks", others seek investments in responsible companies, so long as they don't limit financial returns that much.  And still others, are using SRI as a quantitative metric to boost returns.  The latter has no morality involved.  The authors then go on to answer the questions mentioned above.

     

    Conclusion:

    This "quick-read" has an interesting take on SRI.  Though, may leave some readers asking for more as the authors breezed over certain points.

     

     

     

     

     

    Sep 12 10:43 PM | Link | Comment!
  • GMCR reports crazy-big earnings
    GMCR reported great earnings a few minutes ago.   They seem a lot cleaner than usual, as operating cash flow surged.

    Of course, will need to wait for the 10Q filing...for the real numbers...


    Dominic
    Jul 27 5:38 PM | Link | Comment!
  • Interface, Inc. Video
    Check out this video of Interface's CEO.  He seems so sincere...
    www.youtube.com/watch
    Tags: TILE, SRI
    Mar 03 11:14 PM | Link | Comment!
Full index of posts »
Latest Followers

StockTalks

  • Did anyone check into how $SODA sales were yesterday at Wal-Mart ?
    Nov 29, 2013
  • Just to reiterate some points at the conference today: 1)Kraft Foods Inc. partnership confirmed. SODA will be carbonating beverages
    Jan 5, 2012
  • Doctor Kris: Not sure how closely you follow this co., SODA is up b/c they gave some positive data-points U.S. market. We drink lots!
    Jul 1, 2011
More »

Latest Comments


Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.