Need some advice on ethical investing.

[bif]

Meeting with our stock broker/financial advisor tomorrow. We already have a big chunk of our money in Vanguard funds and are purchasing an ennuity, which will cover us for the next 20 years or so. But we have a sizable chunk of cash we need to invest, probably in several stocks in various sectors that should be making a comeback. Our broker is the type of guy who has no problem investing in defense stocks and energy stock that, shall we say, are less than ethical. So we're looking for companies that will grow and we won't feel bad about investing in. Krogers is one company I like. Any other suggestions?

[jmbar2]

1. I am not a professional advisor or anything, but...

I've been trading for many years now.

A few years ago, Warren Buffet was asked if he could invest in only one stock, what it would be. He said the SPY. Not really a stock, but an ETF based on the Standard and Poors.

I would have to agree. It has had unparalleled growth forever, and pays a good dividend. Just reinvest the dividends into buying more shares.

Even in recessions, the SPY may dip, but will be bought up voraciously by big money and bounce back. Keep adding with dividend reinvestment, up or down, and you will do great.

https://www.macrotrends.net/stocks/charts/SPY/spdr-s-p-500-etf/stock-price-history

Good luck!

[elleng]

4. SWEET he said that,

since I was kicked out of my investment house (guess I became too small,) I've been in S+Poor's ETF. I guess I'll stay there.

[jmbar2]

5. Good for you

The specific quote was actually referring to his how to invest his fortune after he died:

The Oracle of Omaha even said he’s instructed the trustee in charge of his estate to invest 90 percent of his money into the S&P 500 for his wife after he dies

https://www.cnbc.com/2019/02/26/warren-buffett-wants-90-percent-of-his-estate-invested-in-index-funds.html

If it's good enough for Mrs Buffett, it's good enough for me! The only thing I trade now.

[LT Barclay]

2. Sierra club used to have a mutual fund but it is gone now.

Most bundled investments will be under the heading of "socially conscious" investing.
I don't have any investments right now, but last time I searched I had a hard time finding a good one.
The US government isn't exactly an ethical investment, but I was impressed with the return I got from I bonds which pay 1.5% plus inflation.
If you find something good please post.

[JT45242]

3. There are a bunch of ethical and green funds available

I avoid individual stocks completely and go with a variety of funds.

CREF Social Choice has 3 star rating and has averaged 8.54% since inception and 9.70% over the last ten years (QCSCPX)

There are lots of these type funds that you can choose from. They are managed to meet different risks and meet guidelines for Carbon, Social equity, etc.

My wife's IRA has a lot in a Green fund that only invests in carbon neutral companies and bonds.

You can find a variety of options with most of the big firms like Vanguard


https://investor.vanguard.com/investing/esg/

If you are looking for vanguard because you don't qualify for TIAA-CREF (teacher or nonprofit worker), here is their list.

[3Hotdogs]

6. I would do some research and reconsider the annuity idea.

They are good for the broker but not always as good for the customer.

Do you have kids, grandkids?

[mdmc501]

7. I would choose a company that you would enjoy following and being part of your life

I invested in taco bells parent company because I thought that the franchise was going places.

I have Nike stock through an old employee purchase program.

Im not sure what I would invest in if I had the money - - - I would probably research and invest in a cannabis startup.

Good luck!

[bif]

8. Thanks for all your advice.

Lots f good tips here. I'll let you know what I decide on.

[bif]

9. Met with our advisor yesterday...

And this was the plan. 25% of the money will go into broad funds like S&P Index Funds--5 different ones. 25% will go into funds representing specific sectors--probably 5 different funds. 50% will go into individual stocks. Probably 10 different stocks. We bought Costco and Krogers but will wait until the stocks we picked retreat a bit into more of a buy position. We picked out a bunch of stocks that had solid charts including Adobe, Nvidia and others.