Week 11: What is Impact Investing

WEEK 11:  What is Impact Investing
 
Main Ideas and Topics of the Week:
This week we learned about impact investing, which is the practice of investing money in companies that not only generate a profit, but also have social or environmental benefits. 

We learned that such investments are a growing focus for investors and have the potential to match other classes of investments in terms of return, but with the added benefit of serving real needs and addressing real challenges. Market watchers expect that the demand for impact investing will continue to grow as people decide to take a long-term vision of the market and use money to influence companies’ direction. 

Reflection:
One video that I found particularly interesting this week was a TED talk by Kevin Peterson of the New Hampshire Charitable Foundation. Mr. Peterson laid out the case for impact investing and explained what his Foundation was doing to change and better the world around them. But most importantly, this video laid out what you and I can do to participate in impact investing even if we don’t have access to large amounts of capital or maintain an organized fund. According to Mr. Peterson, the most important thing we can do is to keep our money local. Every dollar that we spend in our hometown is going to generate two to three dollars of additional economic activity close to home. This has made me rethink how I spend money and commit to looking for ways to keep my money in my community by seeking out local vendors, even if it means paying higher prices.

Writing Prompt:
Muhammad Yunus would like poverty to only exist in museums. Is that possible?

Sadly, I don’t think that’s possible. As we learn in the Book of Mormon, it’s in people’s nature when they prosper, there begin to be divisions among the people as some people are lifted up with costly apparel and things, which leads to a fall. As a result, there is always a division between the haves and have nots. I do not believe that there is a possibility, therefore, that we can have a lasting end to poverty. As long as there are finite resources, and a desire to have more than someone else, I think there will always be some poverty. We can, however, work to minimize the differences and help people to overcome their circumstances.

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