Ethical Investing ?

Posted by: Martin D on 18 March 2005

18 months ago my father-in-law died leaving my wife, amongst other things, a portfolio of shares. Having had a good look at the quantities and companies it appears that there is a rather large proportion of the stock in tobacco companies. My first thought was mmm get rid of those as soon as possible, then I thought well it’s a free country (well its not but you know what I mean for this argument) we’ll hang on to them. Then my wife recently changes jobs and now works in a hospice in Bristol, this really changed my mind as you can imagine. I’ve decided to sell them in disgust but it was an interesting moral exercise when it comes to hard cash decisions. So just before I hit the “sell” key on the screen, would there be a reason to hold onto them? Its looking like a smoking ban in lots of European countries is on the cards for the future and for every one killed by the stuff another smoker is needed to replace them, from a purely money angle can that be continued.

On a related note how about a Naim Forum investing portfolio of ten companies any suggestions?

Regards

Martin

PS http://www.stpetershospice.org/
Posted on: 18 March 2005 by greeny
Most the tobacco companies pay a good Dividend and have plenty of expansion opportunities in India/China etc etc. So as a pure investment should be reasonably sound. However they have mostly recovered from their (litigation fear sparked) lows of a couple of years ago so now might be as good a time as any to sell.

If you want to reinvest in a more ethical company you might find it difficult to find many, depending what your criteria are.
Posted on: 18 March 2005 by Mick P
Martin

There is no need to have a conscience about tabacco shares. If some idot wants to smoke, why not let them. The Tabacco companies employ thousands of people and pay taxes, so it is not all bad.

As regards to shares, it is always risky buying seperate companies. The best bet is to spread your risk and buy a tracker fund (make sure some of it is done under an ISA) which rises and drops in in with the FT index. It is a good way to average out your investments and trackers are always in the top 25% of managed funds.

I would forget about ethical shares, more of a hippy gimick really. Any company that makes a profit, will pay taxes, which pays for bombing Iraq etc. So where is the ethics in reality.

Regards

Mick
Posted on: 18 March 2005 by Berlin Fritz
Martin, Without wishing to seem pedantic, I did love the way you said "I've decided to sell them", maybe it's just a British thing ? I would suggest Deutsche Post might be worth a bash & a dabble as they'll soon be snapping up a very tasty bargain in the guise of the Post Office, though all of the afore-mentioned record profits will have mysteriously dissapeared, and the tax payer will do the honours naturally, true or true ? I bet even our Mick will have a flutter !


Fritz Von Good Luck, and I hate this lunchtime drinking game surely a shabby British trick, buggers up my tea every time, so it does Big Grin
Posted on: 18 March 2005 by Martin D
Mick
As usual cheers!
The rest are all very even BTW, transport, banks, Pharma, services, construction, and a couple of broad unit trusts.
Martin
Posted on: 18 March 2005 by Berlin Fritz
When her Majesty Knights a Commonwealth member is that effical investing ?


Fritz Von Arise Sir Purves Winker