Views on Ethical Investing

dougz_2

wriggly wrote: »

If we all refused to invest in alcohol companies, but kept drinking their products, would they reduce their production?

Yes.

Because, the companies would have to raise money elsewhere, which would cost them more. Hence their products will cost more to produce. Thus the price of their product will have to rise. Hence less will be bought. Hence production would indeed fall.

LongTermLurker

dougz wrote: »

Yes.

Because, the companies would have to raise money elsewhere, which would cost them more. Hence their products will cost more to produce. Thus the price of their product will have to rise. Hence less will be bought. Hence production would indeed fall.

I think wriggly was talking about Joe Public-small-investor. Of course the institutions will keep investing, and while there's a knock on effect if everyone refused to invest in a fund that invests in alcohol companies, it's never going to happen.

There's more chance of production falling due to the Government's and Society's unfathomable belief that prices should rise because "sensibly-priced (?)" alcohol availability breeds dependency and alcoholism.