Most of us were taught by our parents to be careful where we express our religious and political views. We seem to be living in a corporate world where some executives are not remembering their parents’ advice.
A political hot topic being discussed on Wall Street and elsewhere today is DEI – Diversity, Equity and Inclusion. This is a way of evaluating a business based on how the organization hires and supports individuals of different races, ethnicities, religions, abilities, genders, sexual orientations etc.. This issue has created quite a stir in the investing world. Politicians have even suggested requiring investment firms to select companies based on a DEI score. The efforts seem to have pleased half of the country while angering the other half. We have seen the effects of this in our own office where we have received some calls asking us not to invest in firms promoting DEI with others requesting just the opposite.
This is not unlike when the “Green” movement was first taking shape. We had clients then who asked us to only invest their funds in companies with some sort of high “green” score. Others asked us to avoid any business that was pushing green issues. In both cases we responded the same as we are responding today.
At Wyson Financial our investment goals have always centered around our main purpose which is to provide solid financial advice to our clients. Based on an individual clients’ needs, we will seek out investments we believe most suitable to fill that need. This means we are a results-oriented investor. If a company is “green” or not, or if its workforce is “diverse” or not, may or may not affect the goods and services and ultimately, the profits of the company. The latter is our main concern as it relates to those who have entrusted their funds to our care. In short, our goal is to preserve and build our clients’ wealth. Our investment recommendations will always be based on how we believe an investment may help our clients reach their individual goals.
We also believe corporate America largely has the same goals that we do. If they intend to survive, they need to be profitable for their investors. Recent forays into social and political issues have been very costly for some major corporations and executives and corporate boards are taking note. A corporation cannot survive if it alienates its customer base. Some executives are likely wishing they had listened to their parents’ advice on politics. Thus, we believe after a painful learning period, adjustments will be made at businesses that wish to survive. We will continue to seek out those companies.
Dan Wyson, CFP®is author of “The Gold Egg,” and “21 Financial Myths” and owner of Wyson Financial/Wealth Management 375 E. Riverside Dr. St. George, UT 84790 – 435-986-9525 – Securities and Advisory services offered through Commonwealth Financial Network, member FINRA/SIPC, a registered investment advisor