Monday, 26 June 2017

Virtuous divestments

I've written a short piece for City AM about the moral grandstanding of people who think they can change the world by selling their shares in companies they don't like.


Not content with the government prohibiting smoking in public places, various funds and companies have bought into the ludicrous divestment movement which seeks to bring down industries by trading their shares.

The Guardian started the divestment trend, with its apparent belief that if you get rid of your shares in fossil fuel companies, you will somehow help prevent climate change.

Now Aviva, the insurance company, has announced that it will be selling off its tobacco stock in order to “limit the damage tobacco can cause to health”.

Various universities and local councils have also loudly proclaimed their intention to abandon their investments in “sindustries” such as alcohol, coal and weapons.

This virtue signalling is the emptiest of empty gestures, and, for those whose pensions rely on sound investments, it is an expensive one.

Do have a read.

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