Politically Correct Investing
By Al Thomas
Remember the big stink about tobacco companies? Not that it wasn’t true, but many investors and even major institutions sold all their tobacco stocks. And I ask you, did this hurt these companies at all?
Here is one example. Phillip Morris, now called Altria with the same stock symbol on the New York Stock Exchange, MO, in 1984 listed at $2.67. This nasty company (?) that kills people slowly with tobacco now has that same stock trading at more than $83.80. It rose steadily thru all the bad publicity.
Did you know that when you buy stock thru your broker you are buying it from another individual and not from the company? The only time a company benefits from your purchase is when they have an Initial Public Offering (IPO). That is the first time their stock certificates are issued. After that you are trading dollars with another investor. The same applies to a sale of any shares you may own. It has no effect on the company at all.
If the investor is a strong believer in health products or the environment or any other pet project it does not make a twit to any company whether you own their shares or not. If Mr. Investor is making money in a company that makes poison gas he can take his profits to use to lobby against their manufacture. Of course, that won’t keep any other company in a foreign country from making the same product.
Today there is a huge lobby against the manufacture and use of land mines, but millions are still being sold and put into the ground. It is a despicable product. As long as there is big money in it it will continue and thousands will be killed and maimed.
There you have the answer. It is all about money. Health products that don’t work, machine guns to kill people, useless environmental projects and on and on when looked at closely the answer is always money. Many of the environmental advocates are there to serve up big salaries for their members.
The shrewd investor will put his money where he has the greatest return. Then with the profits he can support his favorite charity or cause.
An investor can make all the political statements he wishes, but why make a useless one that has no effect on the company in question. Put the profits to work where the cause of the investor will do the most good.
That is the way to make a real political statement.
Al Thomas' book, "If It Doesn't Go Up, Don't Buy It!" has helped thousands of people make money and keep their profits with his simple 2-step method. Read the first chapter at http://www.mutualfundmagic.com and discover why he's the man that Wall Street does not want you to know. Copyright 2006 All rights reserved.
Copyright 2006 Albert W. Thomas All rights reserved. Author of "IF IT DOESN'T GO UP, DON'T BUY IT!" Comments to info@mutualfundmagic.com