You may own some pretty nasty companies and not even know it. If you have a 401k or index funds, you most likely own tobacco, coal, pesticides, and gun manufacturers. Yes you are a part OWNER in all of these industries. Since you now know, you can do something about it. DIVEST. Pull out, run away. Say “you can’t have my money no mo’.” Will your action of selling bad companies have an effect? Yes. It will.
Picture the stock market as a Chipotle. Customers are investors designing their perfect burrito portfolio of yummy stock ingredients. If everybody keeps passing on a specific ingredient or a stock such as gun manufacturers, then the stock starts looking like untouched guacamole at the end of the day. You know, with the questionable brown layer on top. Because the ingredient or stock is undesirable, its value decreases. Added bonus - executives most often get paid via stock options. In this example, the Chipotle manager takes home the leftover guac at night. If the value of the stock falls, execs get hit where it hurts.
Make a statement with your money. If you don’t support these companies, why include them in your investment portfolio?
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