From Ben and Rusty: With this note, we welcome Demonetized, a new guest contributor. No, that isn’
Kobayashi Maru
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This commentary is being provided to you as general information only and should not be taken as investment advice. The opinions expressed in these materials represent the personal views of the author(s). It is not investment research or a research recommendation, as it does not constitute substantive research or analysis. Any action that you take as a result of information contained in this document is ultimately your responsibility. Epsilon Theory will not accept liability for any loss or damage, including without limitation to any loss of profit, which may arise directly or indirectly from use of or reliance on such information. Consult your investment advisor before making any investment decisions. It must be noted, that no one can accurately predict the future of the market with certainty or guarantee future investment performance. Past performance is not a guarantee of future results. Statements in this communication are forward-looking statements. The forward-looking statements and other views expressed herein are as of the date of this publication. Actual future results or occurrences may differ significantly from those anticipated in any forward-looking statements, and there is no guarantee that any predictions will come to pass. The views expressed herein are subject to change at any time, due to numerous market and other factors. Epsilon Theory disclaims any obligation to update publicly or revise any forward-looking statements or views expressed herein. This information is neither an offer to sell nor a solicitation of any offer to buy any securities. This commentary has been prepared without regard to the individual financial circumstances and objectives of persons who receive it. Epsilon Theory recommends that investors independently evaluate particular investments and strategies, and encourages investors to seek the advice of a financial advisor. The appropriateness of a particular investment or strategy will depend on an investor’s individual circumstances and objectives.
The last time a financial adviser treated me as one of The Women!, I told him “Your mother was a hamster and your father smelt of elderberries” as I walked out the door. (Genuine, personal values can’t be commodified or monetized. Good job, Mr. Anonymous!)
I started, in the '80s, at an old wirehouse brokerage firm that was still a partnership where - reflectively refreshingly - the openly stated goal of the clients, advisors (called stockbrokers in those less-refined days), traders and partners was, now get this, “to make money.”
And here’s the thing, nobody (or almost nobody) was looking to profit on polluting the water or tyrannical governments and no advisor (or almost none) were looking to churn their clients (no firm or advisor survived long doing that) - a reasonable amount of decency was assumed and practiced without the need to be discussed.
The business was plainer - it wasn’t trying to save the world, just trying to make clients and itself money honestly (yes, a small number cheated and lied and tarnished all of it) - and, looking back, less pompous and hypocritical.
ESG feels like a small-ball good idea (to some) built up to an outsized virtue-signaling meme that has gone further than it should have powered by investors’ vanity and, as pointed out in this ET note, the industry’s need and desire to obfuscate its mediocrity.
I find myself longing for the day when everyone was honest about what Wall Street was about - making money.
Well done. Mr. Demonetized will fit right in. It reads like Rusty or Ben has a twin we didn’t know about.
A promoter of a startup ESG was being interviewed and he made a good point. retail investors don’t vote on corporate resolutions. Institutions do. If it was easy enough to swipe left/right (theoretically) millions of shares could be voted for upstart props at Big Oil, etc., on ESG friendly issues. Interesting and truly changing the rules. Don’t forget Kobyashi was the name of Keiser Soce’s henchman in Usual Suspects…