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By: www.ProfitableInvestingTips.com
According to Bloomberg, Florida Governor Ron
DeSantis is moving two billion dollars in
assets away from management by BlackRock
Inc. His complaint is that ESG investments in
the Blackrock portfolio amount to a social-
engineering project. The Florida CFO, Jimmy
Patronis, says that Florida did not sign up for
this sort of approach.
Our investment take on ESG is that it is
typically profitable because the companies
are well run on one hand and that people get
to invest in whatever they want and then have
to accept the risks. The move by DeSantis
appears to be part of a move by Republicans
on a larger scale. Senate Republicans are
looking at State Street Corp., BlackRock, and
Vanguard Group Inc. which manage twenty
trillion in assets.
While the move by DeSantis is an investment
drop in the bucket aimed at firing up his base
for a 2024 presidential bid, the move by
Republicans on the Senate Banking
Committee has the potential to affect a lot of
people’s investments. Our bottom line
question is this. Are politically motivated
investment decisions wise?

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This document discusses the importance of creating five-year goals and plans for one's career. It notes that when young, it is easy to become distracted by daily events and lose focus on longer-term goals. Creating a five-year plan can help visualize and work towards future success. The document outlines different considerations for a five-year plan depending on where one is in their career - as a new investor, growing investor, or nearing retirement. It emphasizes the importance of stability and avoiding major losses as one nears retirement.

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This document discusses the issues with socially responsible investing (SRI) and provides an alternative strategy. It summarizes that SRI can increase portfolio risk by reducing diversification and missing out on higher potential returns from "sin stocks." It also argues that divesting from certain companies has little practical impact and a better approach is maintaining a diversified portfolio and donating investment gains that conflict with beliefs to relevant charities.

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Who Are the Asset Management Thought
Police?
As explained in the Bloomberg article,
Republicans are saying that the big three
asset managers mentioned hold seats on
corporate boards, apply pressure to get what
they want such as reducing greenhouse gas
emissions, asking for pay data broken down
by gender and race, promoting audits of
racial equity within companies, and
increasing diversity on corporate boards.
Our take on these asset managers is that they
have added ESG investing principles to their
routine because their investors want it and
have continued to use these approaches
because they have not hurt profits or have
even helped.
However, it plays to the conservative base to
say that these guys are a cabal that is doing
these things with investor money and without
investor permission. As noted in Bloomberg
this is the Republicans putting themselves in
the position of thought police for the asset
management business.

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Author 1 October 19, 2018 Professor Frank Werner Sustainable Finance Speaker Summary: Alexis Schwartz- Bloomberg In Alexis’s speech about Bloomberg, she discussed the importance of ESG, or environmental social governance. While ESG means different things to different people, it can be described as a “catch-all term covering Environmental, Social and Governance issues perceived to be relevant to company performance, risk, profitability and overall existence.” While many investors had not thought about ESG in the past, 18% of current investors are thinking about adding ESG to their portfolio due to its stable growth. Of millennials, 37% currently own ESG stock, while 40% are interested in adding to their portfolio. Even when the overall market isn’t doing well, high ESG stocks tend to do better because they are considered investments with a smart beta strategy. With the smart beta strategy, annual returns proved to be higher when a portfolio introduced an ESG stock. One thing Alexis stressed was the importance of materiality and transparency in relation to ESG. Materiality is factors that are closely related to the profits of a business and is specific to each company depending on their industry. After the recession in 2008, materiality became a key factor when investing in stocks. People were insecure about investing in companies because they feared the companies were doing unethical things. They also wanted the companies to be able to survive another recession, so the key to investing was strong companies. Companies with a higher ESG score were more likely to survive in the environment, so these companies thrived. One thing Alexis said that I found interesting is that as millennials come into power, they influence the way the stock market works. She said that even though the majority of high schoolers are not investing in the stock market, they are having an influence on whether companies are adding companies that encourage gun usage to their exclusion list. An exclusion list is ideals that a person may not agree with and therefore choose to not invest in associations with them (ex: The Catholic Church would not invest in any companies that support abortion). While exclusion lists are the most popular sustainable investment policy, ESG integration is second. As millennials, we are more aware of the environmental problems the world is facing, and we are able to prioritize ESG when investing in the market. I think ESG will become as important to my generation as exclusion lists. Bloomberg began covering the ESG product in 2009, covering about 3,800 companies. From 2009 to now, the data set has grown from 72 to over 900 fields. More than 12,242 customers use the ESG data. The data most used include governance, executive compensation, and environmental data. I think it is important that Bloomberg has taken initiative in gathering data for ESG and making it an important factor to help investors make better informed decisions on the companies.

Are Politically Motivated Investment Decisions Wise?
Pros and Cons of ESG Investment Principles
As noted in Fortune, ESG investing can be
viewed as a long-term approach to investing
that does not get short circuited by Wall
Street’s near term focus on quarterly profits.
The argument by ESG proponents is that over
the long haul toxic management cultures
don’t let companies compete for and retain
the best workers.
The lack of sustainable practices ends up
costing money. Climate change is upon us
and those who get ahead of the curve will
avoid excessive government regulation and
see profits as how they do things to help the
environment. For investors, wanting to do
good for the world needs to be added to
intrinsic stock value when choosing
investment vehicles and with folks like
Blackrock it appears to be so.

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David F. Larcker, Brian Tayan, Vinay Trivedi, and Owen Wurzbacher, Stanford Closer Look Series, July 2, 2019 Currently, there is much debate about the role that non-investor stakeholder interests play in the governance of public companies. Critics argue that greater attention should be paid to the interest of stakeholders and that by investing in initiatives and programs to promote their interests, companies will create long-term value that is greater, more sustainable, and more equitably shared among investors and society. However, advocacy for a more stakeholder-centric governance model is based on assumptions about managerial behavior that are relatively untested. In this Closer Look, we examine survey data of the CEOs and CFOs of companies in the S&P 1500 Index to understand the extent to which they incorporate stakeholder needs into the business planning and long-term strategy, and their view of the costs and benefits of ESG-related programs. We ask: • What are the real costs and benefits of ESG? • How do companies signal to constituents that they take ESG activities seriously? • How accurate are the ratings of third-party providers that rate companies on ESG factors? • Do boards understand the short- and long-term impact of ESG activities? • Do boards believe this investment is beneficial for the company?

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The document discusses various topics that may be focused on in the next decade, including Society 5.0, Entrepreneur 5.0, Investor 5.0, Property 5.0, and Wealth 5.0. It also discusses the Global Wealth Group, a platform that connects investors with investment opportunities. The Group has performed well with over 7,500 members investing over $600 million. It is raising $5 million for strategic acquisitions and commercial acceleration. The funding will help increase metrics like revenue and valuation as the Group works towards an IPO target of over $100 million.

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Why Do Folks Like Blackrock Offer ESG Options
to Investors?
Blackrock states that by integrating ESG
principles into their investing matrix their aim
is to improve the long-term client financial
outcomes. They offer ESG options to their
investors first of all because people are
asking for investments using this approach.
Basically a person says that if they can make the
same or a better rate of return on an investment
that does not involve human trafficking, pouring
toxic sludge into lakes and streams, and even
developing new clean, profitable technologies
they would rather do that. Because lots of people
with lots of money are coming to think this way
asset managers like Blackrock have had to
develop investment products for them. These
products are generally broken down into either
specific ESG niches or overall ESG performance
with a close eye on profitability both short and
long term.
What Are the Negative Aspects of ESG
Investing?

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Other NGOs such as Dustho Shasthya Kendro (DSK), Nijera Kori, ASA etc should give an positive steps to follow BRAC, Grammen Bank and Gono Shasthya Kendro (GSK) to develop social business in order to earn fund in collaboration of overseas investors who consider the impact of their investment and profit. The local NGOs should change their mind and reform themselves to attract overseas investments.

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The document discusses how environment, social, and governance (ESG) principles are compatible with venture capital investing. While over $100 billion in assets use ESG, only 5 of the top 50 venture capital funds have implemented ESG. The document outlines how ESG investing focuses on sustainable goals like impact and socially responsible investing. It also notes that only 11% of US firms currently invest based on ESG. However, it predicts ESG integration will increase in venture capital in coming years as issues like climate change, diversity, and gender have become more important considerations. The document argues ESG can benefit venture capital by mitigating risk, addressing societal impacts, and creating a more diverse sector.

First of all, this is America and you get to do
what you want with your money. That is why
Mr. DeSantis, who is in charge in Florida, gets
to pull money out of Blackrock. There are a
couple of investment problems in the ESG
niche. The first is that this investment
approach has become popular and even pulls
at the heartstrings.
Thus it is all too easy for naïve investors to fall
for a “story” told by a fly-by-night company
that has no possibility of making money and
is not doing any of the “good” things that
attracted the investor in the first place. This,
by the way, is why smart ESG investors let
companies like Blackrock do their leg work
and find out who is real and who is fake in
the ESG realm.
And folks like Blackrock have the wherewithal
to tell you if an ESG investment is likely to
make money in your lifetime or simply be a
charitable endeavor aimed at saving the
planet but never actually achieving its stated
goal.
Beware of Mixing Politics and Investing

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This is First Round's effort to provide an in-depth snapshot of what founders across the entire tech ecosystem are thinking and doing, what they're excited about and worried about, and how they're seeing the market. We surveyed venture-backed founders from everywhere — less than 25% from the First Round community — and received over 500 responses, volunteering their experience and opinions.

entrepreneurshipstartupsfounders
Warren Buffett is one of the world’s most
successful investors who has from time to
time vied for the title of the richest person on
earth. He has commented that half of the
time he has a president he did not vote for.
But he has never let politics affect his
investments which he says is a huge mistake.
This is someone who gives billions to charity
each year and who intends to give away most
of his wealth before he dies. We think that
Buffett’s advice should be heeded by starry-
eyed investors who want to use their trust
fund money from Grandpa to save the world.
And we think that folks like Mr. DeSantis
should heed the same advice when they are
custodians of the money of the people of
Florida.
If investments with Blackrock are not keeping
up with the rest of their portfolio, they are
right to dump them. But if actions by Mr.
DeSantis fall into the arguing-about-Dr.-
Seuss-being-a-racist category they are
probably a dereliction of his duty as governor
of his state.
For more insights and useful information about
investments and investing, visit
www.ProfitableInvestingTips.com.

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Are Politically Motivated Investment Decisions Wise?

  • 2. According to Bloomberg, Florida Governor Ron DeSantis is moving two billion dollars in assets away from management by BlackRock Inc. His complaint is that ESG investments in the Blackrock portfolio amount to a social- engineering project. The Florida CFO, Jimmy Patronis, says that Florida did not sign up for this sort of approach.
  • 3. Our investment take on ESG is that it is typically profitable because the companies are well run on one hand and that people get to invest in whatever they want and then have to accept the risks. The move by DeSantis appears to be part of a move by Republicans on a larger scale. Senate Republicans are looking at State Street Corp., BlackRock, and Vanguard Group Inc. which manage twenty trillion in assets.
  • 4. While the move by DeSantis is an investment drop in the bucket aimed at firing up his base for a 2024 presidential bid, the move by Republicans on the Senate Banking Committee has the potential to affect a lot of people’s investments. Our bottom line question is this. Are politically motivated investment decisions wise?
  • 5. Who Are the Asset Management Thought Police?
  • 6. As explained in the Bloomberg article, Republicans are saying that the big three asset managers mentioned hold seats on corporate boards, apply pressure to get what they want such as reducing greenhouse gas emissions, asking for pay data broken down by gender and race, promoting audits of racial equity within companies, and increasing diversity on corporate boards.
  • 7. Our take on these asset managers is that they have added ESG investing principles to their routine because their investors want it and have continued to use these approaches because they have not hurt profits or have even helped.
  • 8. However, it plays to the conservative base to say that these guys are a cabal that is doing these things with investor money and without investor permission. As noted in Bloomberg this is the Republicans putting themselves in the position of thought police for the asset management business.
  • 10. Pros and Cons of ESG Investment Principles
  • 11. As noted in Fortune, ESG investing can be viewed as a long-term approach to investing that does not get short circuited by Wall Street’s near term focus on quarterly profits. The argument by ESG proponents is that over the long haul toxic management cultures don’t let companies compete for and retain the best workers.
  • 12. The lack of sustainable practices ends up costing money. Climate change is upon us and those who get ahead of the curve will avoid excessive government regulation and see profits as how they do things to help the environment. For investors, wanting to do good for the world needs to be added to intrinsic stock value when choosing investment vehicles and with folks like Blackrock it appears to be so.
  • 13. Why Do Folks Like Blackrock Offer ESG Options to Investors?
  • 14. Blackrock states that by integrating ESG principles into their investing matrix their aim is to improve the long-term client financial outcomes. They offer ESG options to their investors first of all because people are asking for investments using this approach.
  • 15. Basically a person says that if they can make the same or a better rate of return on an investment that does not involve human trafficking, pouring toxic sludge into lakes and streams, and even developing new clean, profitable technologies they would rather do that. Because lots of people with lots of money are coming to think this way asset managers like Blackrock have had to develop investment products for them. These products are generally broken down into either specific ESG niches or overall ESG performance with a close eye on profitability both short and long term.
  • 16. What Are the Negative Aspects of ESG Investing?
  • 17. First of all, this is America and you get to do what you want with your money. That is why Mr. DeSantis, who is in charge in Florida, gets to pull money out of Blackrock. There are a couple of investment problems in the ESG niche. The first is that this investment approach has become popular and even pulls at the heartstrings.
  • 18. Thus it is all too easy for naïve investors to fall for a “story” told by a fly-by-night company that has no possibility of making money and is not doing any of the “good” things that attracted the investor in the first place. This, by the way, is why smart ESG investors let companies like Blackrock do their leg work and find out who is real and who is fake in the ESG realm.
  • 19. And folks like Blackrock have the wherewithal to tell you if an ESG investment is likely to make money in your lifetime or simply be a charitable endeavor aimed at saving the planet but never actually achieving its stated goal.
  • 20. Beware of Mixing Politics and Investing
  • 21. Warren Buffett is one of the world’s most successful investors who has from time to time vied for the title of the richest person on earth. He has commented that half of the time he has a president he did not vote for. But he has never let politics affect his investments which he says is a huge mistake.
  • 22. This is someone who gives billions to charity each year and who intends to give away most of his wealth before he dies. We think that Buffett’s advice should be heeded by starry- eyed investors who want to use their trust fund money from Grandpa to save the world. And we think that folks like Mr. DeSantis should heed the same advice when they are custodians of the money of the people of Florida.
  • 23. If investments with Blackrock are not keeping up with the rest of their portfolio, they are right to dump them. But if actions by Mr. DeSantis fall into the arguing-about-Dr.- Seuss-being-a-racist category they are probably a dereliction of his duty as governor of his state.
  • 24. For more insights and useful information about investments and investing, visit www.ProfitableInvestingTips.com.