The postmodern era of investing

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xmj
Posts: 120
Joined: Tue Apr 14, 2020 6:26 am

Re: The postmodern era of investing

Post by xmj »

WFJ wrote:
Wed Jul 27, 2022 4:02 pm
Hold the same (MO/PM/BTI). Also self-indexing with most boring funds as I don't want CalSTRS/Blackrock to use investors' money to support radical weirdos like Engine One to pollute corporate boards.
Good to see! Do you do any other low-duration plays with high dividend rates?

WFJ
Posts: 416
Joined: Sat Apr 24, 2021 11:32 am

Re: The postmodern era of investing

Post by WFJ »

Preferred stocks are a possible investment but learned these are crazy volatile to interest rates. Bought some preferred stock in March, one position was down 17%, but now up 4%, too volatile and illiquid (can't sell when price is going down) for anything but small position. I have no experience with inflation investing and have capitulated and resigned myself that Series-I bonds in small amounts is the only hedge. Regulatory risk of almost all energy, food, utility requires more research than I care to do at this point. Bizarre Jull ban is such an instant where rules can be made without reason and cause a 10% dump in day for one company (MO).

MBBboy
Posts: 212
Joined: Sat Jan 01, 2022 12:11 pm

Re: The postmodern era of investing

Post by MBBboy »

Came across this today, which seemed relevant: https://www.wsj.com/articles/how-your-r ... _lead_pos5

The specific fund mentioned will launch this week, and is an energy ETF called DRLL. The goal of this fund, and other funds in the future from this group, is: "to restore the voices of everyday citizens in the American economy by leading companies to focus on excellence over politics". The founder emphasizes that the goal is not to select stocks in accordance with "right-wing values", but to be truly apolitical.

The true purpose is to get enough capital that they can introduce shareholder resolutions that prevent some of the votes and actions that are deemed as political. An example in the article is to introduce a resolution that says “All current and future investments shall be evaluated exclusively through the lens of financially measurable return on investment.” Another example would be: “All hiring at every level, including executive and board hiring, shall be based exclusively on job qualifications, without regard to race, sex, sexual orientation or political belief.”

It might be hard for the big firms that are voting with other people's money to vote NO on those resolutions. And once adopted, they would serve as buffer against future actions and resolutions that seek to advance a narrow cause that isn't directly related to the business / financials.

No idea if it would work, but raising for awareness. Looks like the fee for this ETF is the same as the competing one from Blackrock, so at a minimum you wouldn't have to pay a premium to work with a company expressing this POV.

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