What does the Democratic system suggest to us? Individuals have the right and liberty to decide what is best for them. Among these many decisions, there will be a common one that has a higher number of individuals than other common decisions. And we have seen many of these common decisions/opinions in history, such as an end to slavery. Nowadays, it seems there is a common opinion-forming and growing stronger with time.
The impact of humanity’s ecological footprint has been a growing concern since the 19th century. One of its side effects is global warming. This has been considered as a fact because multiple country’s scientists agreed on the findings. Why do scientist’s opinions matter? Because they all follow the same logical thinking and the career is not as lucrative as other careers. And the public has 100% have the access to their findings’ report. And anyone can challenge their findings, they just gotta prove it by actually doing what they did step by step. A lot of people believe in this fact, which means they all believed in one certainty of the future. Due to this reasoning alone, there was a common opinion on then (and still) current issues namely the side effects of carbon dioxide.
Elon Musk believed in it and he presented the world with a solution, it is possible to drive EVs in style! Hence, Tesla’s stock, a company that didn’t make a single cent for a full year in ten years after IPO, has been consistently increasing and eventually took the first 1st place in the highest valued American automaker. The Short Squeezes definitely contributed a lot but it proved to all of us that ESG and Impact Investing is a good example of a purely democratic system. It can’t get any purer than putting your money where your mouth is! The more money flows into ESG and Impact Investing, the more companies will start finding solutions just like Tesla did many years ago. Wouldn’t that be something good for all of our future and possibly our pockets?
This is in no way to suggest that’s any company that is considered ESG investing is a winning stock. The impact of the products on the current problems is the driving factor in picking a good stock. Even if the product is not yielding profit, if enough people believe in its mission, ESG and Impact investors can keep companies afloat until they find sustainable profitability.
