SOCIALLY RESPONSIBLE INVESTING

With Christopher Leventis Cox, former Wall Street Fund Manager

1960s concept of social investing started in churches

• didn’t want to invest in sinful activities

1980s shifted to individual level

• Today $2 Trillion invested based on social responsible investing
• people spend more time choosing their clothes and washing machines than choosing how to invest their money
• socially responsible investing does not get you wealthy quickly

There is NO defined guideline but a PERSONAL CHOICE. 2 screens fit criteria of socially responsible investing:

• negative screening
• issues against belief system:
• tobacco
• oil
• animal testing
• GMOs
• positive screening
• things that make sense: some companies are innovators and try to make positive changes, while others are making the current situation better
• organic foods
• companies that help stop people smoking
• eco-friendly products
• water solutions
• solar power

Where to look for information on companies?

• http://www.edgar-online.com/
• http://finance.yahoo.com/
• http://www.morningstar.com/
• http://money.msn.com/

What to look for?  Company’s

• Quarterly (10Q) and annual reports (10K)
• Practices
• Policies
• Products

What if I don’t understand something?

• Call the company’s investor relations 1.800# and they will answer your questions.

3 ways to invest:

1. personal investment
• use a spreadsheet
• need to be calm and objective
• need to keep goal in mind because it is challenging as Socially Responsible Investing does not make money like mainstream investing does
• you have direct control
• open on-line accounts:
• http://www.tdameritrade.com
• https://us.etrade.com/
• https://www.fidelity.com
• Probably need at least $2,000 as a base to make an investment worthwhile

2. mutual fund
• someone else manages your funds
• negative:
• depending on how your money is managed, the yearly fees range 1-30% of your $
• pay attention to their strategy because it can change all the time
• pay attention to the management team:
• socially responsible investing is not a popular place for a fund manager
• best if they had been there 3-5 years and show returns on investments
• need 3-5 year track record

3. index
• buy and hold stocks that fit criteria of social responsible investment
• it is not managed daily
• fees are lower
• S&P, Dow, NASDQ à 80% of managers cannot beat an index
• Look at 3-5 year record of grid index, solar energy, clean energy
• Gold only beats inflation ½ the time
• Look at average trading volume
• No enter and exit fees

Socially Responsible Investing Forums/Funds

http://www.socialinvest.org/

http://www.greenbookmarks.com/

RULE #72: Diving the percentage of your return by 72 to get an idea of how long it will take to double.  E.g. 10% will double in 7.2 years.