Investing: A Moral Good?

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It is unquestionably good that we have farmers to raise our food, shopkeepers to bring the things we need within reach, nurses to nurture us back to health, and so forth. We know instinctively that any pursuit that benefits others, or helps to meet the needs of society at large, is a worthy pursuit.

Is investing in the same category as worthy labor? Some people tend to think it is not. We offer the following perspective for your consideration.

Many of us have known route drivers for overnight and package delivery companies; long-tenured ones become part of the fabric of a community, well known to all. They clearly perform a worthy service. Yet how valuable would their efforts be without the trucks, planes, terminals, software systems, and the rest of the capital investment that supports their jobs? How much delivery could get done if the only equipment was handcarts?

The two largest such companies have billions of dollars of assets invested so that hundreds of thousands of employees have the tools and resources they need to do their jobs. This capital at work, about $100,000 per employee, is what makes the efforts of the workers so valuable. Where did the money come from?

Companies issue stock and bonds to finance their capital investments. The buyers of those investments, the investors, are ultimately the ones who provide the tools used by the workers to increase the value of their efforts.

And who are these “investors?” We know hundreds of them personally. They are workers saving for retirement, the retired, widows, families saving for college expenses, and everyone else trying to put money away for a rainy day or leave a legacy.

So do these friends and relatives and neighbors deserve a return on their investment? Presumably we all agree that a return on investment is only fair.

People at work and investments at work are to the world as teachers and classrooms are to education. Both are needed, both are useful. In the sense that necessary and useful things are good, both are worthy.


The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All investments involve risk and may lose value.