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Woke Wall St. - how to kill industries - ESG

jhblaze1

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Right behind you.
One could argue that ESG companies are set to benefit from their cozy relationships with the Democrat party in the form of federal contracts and subsidies. But it's a weak argument considering that even with all the subsidies, these companies have an overwhelming track record of financial failure.

BTW, I was involved in the creation of the first leveraged syndicated loan sold to institutional investors other than banks, about 20 years ago.


That's pretty cool. are/were you and i-banker?
 

kevin9

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Sounds like a continuation/expansion of the anti-South Africa (aka. anti-apartheid) and anti-Israel (aka. anti-Zionist) movements.

WRT to investing in private prison companies, and some other industries, I can easily see them being highly risky investments given the politically charged nature of the businesses (ex. Biden's recent EO banning private prisons from the federal system), without even considering their morality.
 

Cowgirlup

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I heard about this on some conservative talk radio show.

The more disturbing part is that it is UN backed.

It's NWO stuff. [tinfoil]
 

Sammy

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ESG is the latest craze. It reminds me of the exotic instrument craze of the mid-2000s that resulted in the 2008 financial fiasco. Similar to the early 2000's hedge fund craze. Back then there was something like 45,000 hedge funds. They were completely unregulated and all but 3000-4000 survived. I remember some hedge funds were nothing but a fella betting on horses or some craziness like that.
..or the carbon trading craze.
Point is, ESG is a fad that will go away as soon as the next "big thing" which I think the GameStop situation might be. You see, everyone has figured out how to "shake a tree" on the way down. Now, there aren't that many methodologies to "shake the tree" on the way up. So far, the only trick guaranteed to work when market is going up is illegal(look up the definition of "Ponzi scheme").

I am a data scientist. I work with ESG data. What makes ESG more evil than everything that came before it is the fact that there is NO regulation as to what attributes to assign to entities(stocks, countries, or companies). For example, who do you think assigns to every Israeli company an attribute "supporting apartheid"? Not the bankers! They BUY the data from data firms that are not regulated in any way or using any form of a common methodology. For example, I just spent a week trying to combine ESG data from 4 data provider companies so I could have a full picture. Today, I found out that next week we are getting two more "ESG data providers". I wouldn't be surprised if one of these "data providers" is a Kremlin entity.
 

AHM

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For example, who do you think assigns to every Israeli company an attribute "supporting apartheid"?
Dunno, but since Google bought Waze,
that must mean Google supports apartheid.

Spread the word.
 

teamRR

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ESG is the latest craze. It reminds me of the exotic instrument craze of the mid-2000s that resulted in the 2008 financial fiasco. Similar to the early 2000's hedge fund craze. Back then there was something like 45,000 hedge funds. They were completely unregulated and all but 3000-4000 survived. I remember some hedge funds were nothing but a fella betting on horses or some craziness like that.
..or the carbon trading craze.
Point is, ESG is a fad that will go away as soon as the next "big thing" which I think the GameStop situation might be. You see, everyone has figured out how to "shake a tree" on the way down. Now, there aren't that many methodologies to "shake the tree" on the way up. So far, the only trick guaranteed to work when market is going up is illegal(look up the definition of "Ponzi scheme").

I am a data scientist. I work with ESG data. What makes ESG more evil than everything that came before it is the fact that there is NO regulation as to what attributes to assign to entities(stocks, countries, or companies). For example, who do you think assigns to every Israeli company an attribute "supporting apartheid"? Not the bankers! They BUY the data from data firms that are not regulated in any way or using any form of a common methodology. For example, I just spent a week trying to combine ESG data from 4 data provider companies so I could have a full picture. Today, I found out that next week we are getting two more "ESG data providers". I wouldn't be surprised if one of these "data providers" is a Kremlin entity.

Hedge funds were something else. I know a guy who when he wrapped up his career in special forces, he joined a company 100% made of similar vets, who sold hedge funds. It was cool, basically day 1 he had a nice apartment setup by them, nice car, made tons of $$, and I mean tons. The funny thing was this particular person, although he seriously was like a real life Rocky personified, he wasn't qualified (be it due to lack of interest or otherwise) to balance a checkbook. Maybe the other guys were, I don't know, but with him it was a really strange gig.
 

hminsky

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SO what I don't get is, if it's a free market, why wouldn't other investors jump in to provide this credit or whatever that the woke investors are
declining to invest in, and get the value that has been left on the table so to speak?
 

new guy

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The companies would rather pay lip service and draft a few policies and processes then suffer the hit to their stock price.
 

Dennis in MA

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SO what I don't get is, if it's a free market, why wouldn't other investors jump in to provide this credit or whatever that the woke investors are
declining to invest in, and get the value that has been left on the table so to speak?

It's fear. What if they all band together? Then you're royally F'd.

I recall listening to a CEO series on a podcast a year or two ago. I was DUMBFOUNDED at how much time a CEO spends a day talking to large/activist investors/analysts. Good thing I'm not in charge. "Get bent. Buy my stock or not. I've got a company to run. I'll turn you over to a minion if you want or just hang up now. How about 40 guys like you call you every day so you can't get your F'ing job done!?"

And it's fear. Fear that somehow an activist will go ape-poopy or an analyst will reco selling the stock. Sorry. The bottom line of the success/failure of a CEO is net income. Period.

I'm betting Warren Buffett doesn't spend time every day talking to analysts and activists. He goes and runs his company, drives his 400 year old truck and naps.
 
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