Highlights:
- Stuck wondering if you should make an investment that doesn’t align with your values? Read this
- How one investor happily walked away from an investment backed by Warren Buffett
- 4 things to ask if you’re ever questioning an investment
As investors, we all face this sooner or later: the numbers show one thing, but our gut feeling says “no”.
➜ Maybe it’s an industry you’d rather not support, even if the returns look solid
➜ Maybe it’s a company that looks like a bargain, but investing in it doesn’t feel right
The struggle is real, and Passiv’s co-founder just went through it.
He shares his process for how he came to a decision that helped him sleep well at night.
“Should I buy this?”
“When the UnitedHealth CEO got shot, their stock price tanked and I thought, if I buy this, I’m going to make money.”
On paper, the decision looked obvious: buy low, hold, and wait for the rebound.
But it’s more than just numbers…
“I asked my wife, ‘Should I buy undervalued companies just because they’re undervalued - even if it goes against what feels right?’”
Finding his line in the sand
His wife didn’t hesitate. “Every time you compromise, you kind of push it,” she told him. “And then it becomes easier to push it a little further.”
That hit home.
He realized, “I didn’t want to keep moving the line just because the numbers made sense. So I didn’t buy.”
Even top investors agree it is a money maker
Just days after this conversation, news broke that Warren Buffett invested in UnitedHealth.
From a purely financial standpoint, it’s a sign this investment would’ve paid off.
“But it just didn’t feel right. I couldn’t do it.”
Many of us face similar struggles
Whether you stick entirely to index funds or add a few individual stocks on top, a lot of investors find themselves torn.
Some investors wrestle with the fact that their ETFs include companies they don’t believe in.
Others find peace in letting it go, since in reality only a fraction of their investments are tied to those companies.
And the tension definitely increases when you’re looking at individual stocks since there are no other companies in the mix to balance things out.
There’s no one right answer since it’s different for everyone. It’s about finding your own ‘happy medium’ between building wealth and feeling good about how you got there.
Choose investments that reflect your strategy and values
Before investing in something you’re not sure about, asking yourself these questions (or talking them over with someone) can help you get clear on what makes sense for you.
How would I feel if this investment did well?
Would I celebrate the gains, or would I have ‘the ick’ knowing how they were made?
How would I feel if I walked away?
Would passing on this bring peace of mind, or frustration that I left money on the table?
Where’s the line between sticking to my principles VS keeping things practical?
Would I rather avoid anything that doesn’t sit right with me, or can I live with a bit if it helps me stay diversified and on track with long-term returns?
What lets me sleep at night?
At the end of the day, could I make this choice and go to bed without second-guessing myself?
Stay on track with your goals
At the end of the day, you get to choose what to invest in to build wealth.
Passiv makes it easy to set up a portfolio that keeps your money aligned with both your goals and your values.
Plus, you can even exclude stock picks that don’t sit right with you!
Ready to set up a portfolio that feels good and stays on track? Start using the Passiv “Forever Free” plan today!
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