Many investors will not want to invest in weapons, coal, casinos and certain other “bad” products. This moral cut in demand presumably means these investments have to give a better mix of returns and risk in order to attract buyers. (Conversely when something like a Wind Turbine company sells shares it might be able to offer less returns because people want to help the “good” company.)
You could use this to add an extra twist to all those LW articles about efficiently giving to charity. Fist you decide that some “universally recognised bad thing” is not so bad really (compared to say, dead children). Then you work out how many children you could save by investing in it.
eg. you decide a child’s life is worth more than a X acres of rainforest, and donate appropriately (loosing rainforest as opportunity cost). However, maybe you could do even better by investing in an Amazon Logging Company and actively trading rainforest for lives.
Many investors will not want to invest in weapons, coal, casinos and certain other “bad” products. This moral cut in demand presumably means these investments have to give a better mix of returns and risk in order to attract buyers. (Conversely when something like a Wind Turbine company sells shares it might be able to offer less returns because people want to help the “good” company.)
You could use this to add an extra twist to all those LW articles about efficiently giving to charity. Fist you decide that some “universally recognised bad thing” is not so bad really (compared to say, dead children). Then you work out how many children you could save by investing in it.
eg. you decide a child’s life is worth more than a X acres of rainforest, and donate appropriately (loosing rainforest as opportunity cost). However, maybe you could do even better by investing in an Amazon Logging Company and actively trading rainforest for lives.