Why Invest Long Term?

• Public markets can disproportionately reward short-term earnings rather than long term growth.
• CEOs of publicly traded companies are under enormous pressure to deliver consistent quarterly earnings growth or suffer the consequences of declining share prices and or short-lived tenures in the C-Suite.

• Patience can lead to profits
  • Great ideas need time to incubate, nourish, refine, and grow into comprehensive transformational solutions to current and future challenges.
• Trends take time to develop and sustain
  • If you choose wisely with your head, your heart, and some solid math you can relax and enjoy upward rise and filter out the inevitable ups and downs along the way.
• Why endure the stress of daily market fluctuations when you can invest for the long haul?
  • Investing in publicly traded companies can be a rollercoaster subject to the wild swings up and down as we have been experiencing over the last few months.
  • Buying and holding public equities is a strategy with long term positive returns, but you have to be willing to endure market fluctuations. The long-term average annual return in the S&P 500 adjusted for inflation is about 7% (according to Investopedia). So, a diversified stock portfolio has traditionally been a solid investment choice over time.

• • If you don’t need short-term access to a portion of your investable funds, you can buy and hold publicly traded stocks and block out periodic volatility

OR…

• Invest for the long term in private companies
  • Traditionally, private company investing has been largely available only to high net worth individuals, institutions, venture capital and private equity firms.
  • Such investments are highly illiquid and generally have finite holding periods of 4-7 years to realize a return upon exit (sale of the company, merger, IPO, etc.)
  • Pre-IPO companies are often loaded up with debt and driven toward rapid growth at all costs to facilitate the mid-term exit

AND…

Consider Investing a portion of your portfolio in privately held companies with environmental and social Impact

Why Impact Investing?

• It’s is a smart investment decision. Even now, now impact drive (ESG) funds are outperforming other companies during the Covid-19 pandemic

Merrill Lynch’s Case for Sustainable Investing

• Inflows into sustainable strategies over the next few decades could be roughly equivalent to the size of the S&P 500 today.¹
• Firms with good or improving environmental, social, or governance (ESG) characteristics have been shown to perform as well as—and may even outperform—their peers.²
• Companies that are ranked higher by ESG data providers have generally seen lower future earnings volatility.³
• Nearly two dozen emerging markets offer approximately $23 trillion in climate-related investment opportunities.⁴
• Companies with good or improving social characteristics have, on average, outperformed companies with negative characteristics.⁵
• While performance results have varied over time, companies with better scores on board diversity and management diversity saw consistently higher future return on equities than counterparts with lower scores.⁶

In Summary

• It’s good for society—investing in companies with positive environmental and social impact helps our planet by addressing and solving important problems.
• It’s good for your personal health—remove the anxiety of market volatility and take solace in the fact that your investments are in alignment with your personal values.
• It’s the right thing to do—make the world a better place for our kids and for future generations
• It’s good for your portfolio health too—build your net worth while you #growyourmoneyforgood