| > I guess there is actually an 11th person saying, awesome I can financially support this evil company in the short term and make a quick buck. Well, unless you belong to the minority of people on this forum with no assets in the stock market whatsoever (either directly or indirectly via a bank account, pension fund, etc), you are part of the system that profits off corporate activity. The only exception is if you traced your holdings in such companies (Wells Fargo is the example given here) and where they are getting used to within reasonable limits (some activity may not be disclosed to you as a member of the public for instance), and divested from all of them. A priori, I would find such a situation highly unlikely. All that the grandparent commenter did was to allocate/deallocate to get a better return, and is honest about it as you point out. What more can one ask for or expect? Full divestment to within information limits as outlined above? And as you point out, changing the system is super hard. > And as disheartening as a comment likes yours is, it's truthful, and I personally find it motivating and inspiring. I guess it's sort of like telling someone something can't be done and that being the catalyst for action. I'm pretty motivated at this time to create an organizational platform for boycotts in a crowdsourcing-esq style without need for funding. I am very happy to see people with energy for these sorts of things; feel free to email me to discuss more. > If you don't mind, I guess like a sort of prelaunch feedback, what would it take for someone like you, willing to profit on bad corporate behavior, to instead become a leader for change? I can give you mine: 1. I need enough savings to live on a "student budget" for the rest of my life in the United States. Until such an amount is reached, compromises will be made, such as what you term "finanically support this evil company in the short term and make a quick buck". 2. I do not wish to do this full time at any stage - there are other things in the world that interest me far more (chiefly scientific questions, usually from mathematics/applied mathematics). For example, if you provided a list of such-and-such companies engaged in such-and-such, and provided a summary of why you consider such a boycott worthy, I would evaluate it. Once upon a time I would have done the research myself; but I no longer have the energy and have a different set of priorities. On these lines, I have found http://www.givewell.org/ and more generally the "effective altruism" movement fantastic. |
As appealing as it is to just use Vanguard index funds for my retirement account and be done with it, I have so far resisted the urge to do that for this reason. If I don't want a company to exist, I don't want to own that company, even if it only makes up 0.05% of my money. I think cheap, broad, cap-weighted index funds are the best way to invest in stocks, but I want the ability to exclude stocks of companies I find unethical.
There's an opportunity for a roboadvisor to replace all index ETFs with directly-replicated indexes. Vanguard TSM has around 3500 stocks and the international index also has thousands. I'm sure it was impractical and not cost-effective a few decades ago to buy thousands of stocks in fractional units for each customer account, but I think the large roboadvisors could pull it off today: they have scale, automation, and the ability to aggregate and batch all customer trades daily (minimizing trading costs). Wealthfront's direct indexing is a good start, but it's only for US large-cap stocks, and the lack of support for fractional shares means a 6-figure minimum account balance and potentially meaningful tracking error.