Does Society Become What We Invest In? – Scarab %Building the Bridges to a Future Fit® Society – Scarab
In the same way that the old adage “you are what you eat” holds true, so too should investors embrace the concept that “you become what you invest in”. Financial capital drives economic growth and so if you want to live in a positive, healthy, happy and sustainable world and you are an investor it logically begins with investing in sustainable, positive growth businesses.
While this either seems logical or a little overwhelming, it is a pragmatic reality. As with all positive change, when the direction of change is supported by a groundswell movement (consumers) and influencers (investors), it is unstoppable.
Add to this the fact research proves time and time again that along with ethical products, pricing models and market activity, comes less risk, better consumer support, and higher profits – in other words, greater returns.
If you want your neighborhood to flourish, then invest there: Responsibly. Make profit for your efforts, but insist on Positive Impact. Consider how real estate gentrification can either renew previously derelict areas, or turn them into a new faceless morass of unhappiness.
As capital becomes more and more geopatriotic, which poses a challenge for S&P 500 aligned growth statistics, it poses a huge positive opportunity for people to take a view on a smaller target, one closer to home, and effect change one step at a time where and when it matters to them most.
Impact investment is, simply put, a new “growth investment marketplace”. The deals are often undervalued because the investee businesses aren’t just in it just for the money. They are passionate and so you get reasonably valued investment opportunities aligned with huge sweat equity, energy, and ethical conviction: read reduced investment risk.
We often overlook, that in any M&A / investment transaction, people are always the starting point. If we like them, we can work with them. Often, people who are passionate about a cause wear their heart on their sleeve and so, by default, are more authentic, ethical and transparent, helping to mitigate transaction risk.
Impact investment has a huge upside reach, it is both a new market and a new way of doing business. In many ways, it’s simpler and more effective than what is currently standard practice. And in the most important ways, it has a direct, positive effect.
So be the thinkers of the sustainable future. Be sure to invest in what you want the world to be – now and in the future.