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The "Socially Responsible" Scam - YouTube
Channel: John Stossel
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Want to make money, and help the world?
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You can, says Wall Street.
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Socially responsible investments give you
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The opportunity to do good
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without sacrificing competitive returns.
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Cool, I can protect the environment,
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improve society,
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invest in companies that respect indigenous people,
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and create
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A more sustainable world,
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a more compassionate world
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Trillions are pouring in
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Impact investing is growing
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at a much faster rate than mainline investing.
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The full integration of sustainability factors
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Yes, former Vice President Al Gore
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is one of many promoters
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Can actually enhance returns
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They do enhance his returns.
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The management fees help him pay for his many homes.
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It is the single largest investment opportunity
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His and other allegedly responsible funds
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say they do two good things:
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Support sustainable projects now
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while also providing a dignified retirement to people
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But they're really not doing either one of those things.
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Economist Thomas Hogan examined their promises.
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Iâve had a lot of experience looking at
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these types of investments
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and they don't actually accomplish
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the goals of being environmentally or socially responsible.
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For example, Al Gore says his so-called sustainable investments
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Can actually add to performance.
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But
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If you look at what they're investing in,
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they're not really making socially conscious investments.
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Their number one holding is the parent company of Google.
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They're just buying basically regular companies.
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We have to find how to get the passive investors
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It makes people feel good.
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People want to feel like they're making a difference
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and these companies are able to sell that.
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Some so-called green investments did well lately,
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because oil prices dropped.
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But most will probably give you lower returns,
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because they charge higher fees
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This fund eats more than half a percent
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of your money every year.
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Second problem:
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âSustainabilityâ is often just marketing.
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Parnassus brags about the social impact of its investments inâŠ
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Are you ready?
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âUS Foodsâ and âClorox.â
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Parnassus says food and cleaning supplies
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help meet UN sustainability goals like
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ânutritionâ and âsanitation.â
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Câmon, these products are useful,
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but there's nothing especially responsible about them.
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Blackrockâs socially âawareâ fund brags
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that it gives you 2.6% more exposure to gender diverse boards.
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2.6% who cares?
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This environmentally aware fund invests also in Chevron and Exxon.
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We asked Blackrock if one of their people would appear in this video,
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they declined.
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So this is really just a new way for Wall Street to scam rich people.
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These companies are saying one thing and giving them another.
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In some cases they do worse.
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Most âgreenâ funds wonât invest in the Keystone pipeline,
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but pipelines are better for the environment than the alternative
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[Oil truck sound]
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shipping oil by truck.
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Ban Fracking!
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Some green investors oppose fracking,
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but the US led all countries in reducing carbon emissions
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mostly because frackingâs natural gas reduced demand
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for coal and high carbon oil.
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The ugly truth is most so-called sustainable investments funds
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charge more to sell feel-good nonsense.
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Doing good and doing well
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can make you feel good as an investor.
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But it shouldnât make you feel good to pay more
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to accomplish nothing.
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Normal businesses operating and creating things that
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consumers want,
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that creates a lot value for society
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and not these funds that supposed to be
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doing something socially or environmentally responsible.
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[swoosh]
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Do you find these videos useful?
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I hope you and I hope you help us keep making them.
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We count on people like you to do that.
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Please, press that button
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and Merry Christmas.
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