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In this episode, we interview Todd Tresidder of Financial Mentor. Todd speaks to me about the ineffectiveness of screening alone as a socially responsible investing strategy.
Todd graduated from the University of California at Davis with a B.A. in economics and a passion for creating successful businesses. A serial entrepreneur since childhood, Todd went on to build his own wealth as a hedge fund investment manager before “retiring” at 35 to teach others. Today, he provides advanced investment and retirement planning education at FinancialMentor.Com showing you what works, what doesn’t, and why based on a depth of proven experience.
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I enjoyed listening to the podcast today when your guest was Todd Tresidder.
I disagree with Todd that my only concern as an investor is to maximize the amount of money I can make via my investments. When I invest my money, I don’t stop being the human being that I am. I think many economists make the mistake of believing that human beings can be reduced to homo economicus. I think some financial planners make this mistake as well. My investment decisions cannot be understood in economic terms alone – my investment decisions are an extension of who I am… of my values, my understanding, and my life experience.
I do understand his point that whether I hold Exxon Mobil in my portfolio doesn’t mean anything to Exxon Mobil. However, it does mean something to me.
If all I cared about was making the most money I could from my investments, I would probably invest in a couple of Vanguard index funds and be done with it. I understand that… and I’ve chosen not to go in that direction. I understand by doing so, I could be leaving money on the table… and again, I’ve made that decision with eyes wide open. Having said that, I do my homework and try and end up with a portfolio which comes close to my values – all of my values – including one of my values which is to maximize my rate of return given my tolerance for risk.
One last thing… I’m a librarian. I chose this occupation for many reasons… one was that it does pay me enough to keep a roof over my head and food on the table. However, maximizing my earnings potential was not paramount. The same was true when courting a wife. Why should our decisions be any less complex when it comes to investing?
Steve – I really appreciate your comments. Bill