Invest In What You Love! | InvestED Podcast

TL;DR

This video discusses the importance of investing in businesses that align with personal and business values.

Transcript

that's what i mean you really need to know your business you don't you don't it's not enough to go say oh this company's got the box checked for esg right and therefore it's a so it's a good company for me to own right that definitely works definitely all right definitely i have a question about this i have a question about this point okay my kids ... Read More

Key Insights

• 👨‍💼 Knowing your business and understanding its values is crucial when making investment decisions.
• 👨‍💼 Investing in businesses that deserve to be in the world in the long term ensures a focus on sustainability and positive impact.
• 👨‍💼 Personal and business values should be aligned to maintain integrity and congruity.
• ❓ Actions should reflect stated values to avoid contradictions and maintain authenticity.
• 👨‍💼 Investing in businesses that match personal values reduces the risk of association with practices or activities that may cause embarrassment.
• 👨‍💼 Owning a business that aligns with personal and business values brings pride and a sense of purpose.
• 👨‍💼 Due diligence is essential, but it's impossible to know everything about a business from an outsider's perspective.

Questions & Answers

Q: How does investing in businesses that align with personal values differ from simply checking off the ESG criteria?

Investing based on personal values involves a deeper understanding of the business, considering factors beyond just ESG. It ensures a better alignment with your beliefs and ideals, making you proud to be associated with the business.

Q: What does it mean for a business to deserve to be in the world in 20 years?

It means that the business has qualities and practices that make it worthy of existence in the long term. This criterion helps identify businesses that have sustainable and positive impacts on society and the environment.

Q: If a business fails to meet one checklist criterion but meets the "deserving to be in the world" criterion, what does that mean?

Failing one criterion doesn't necessarily make a business unworthy. The "deserving to be in the world" criterion considers the overall value and impact of the business, which can compensate for shortcomings in other areas.

Q: How does investing in businesses that match personal and business values avoid potential embarrassment?

Investing in businesses with matching values reduces the risk of associating with businesses engaged in practices or activities that may be embarrassing or against personal beliefs. It ensures that owning the business is something to be proud of, even from the perspective of children or acquaintances.

Summary & Key Takeaways

• Understanding your business is crucial when making investment decisions, as it goes beyond simply ticking the ESG (Environmental, Social, and Governance) box.

• Investing in businesses that you are proud to own and that deserve to be in the world in the long term is key.

• The business should match both personal and business values, ensuring congruity and integrity.