$200 Party, page-318

Tell you what I’ll do for you seeing you are a bit time poor.

I’ll summarise my post for you with the following simple points:

1. The average investment returns generated by ethical funds appear to be inflated through the cherry-picking of selected managers for the survey.

2. Those average investment returns are low, in the context of typical portfolio tracking error.

3. Many investors on this forum would generate better investment returns than the ethical fund average.


Now getting back to CSL (after all, this is the CSL thread):

You seem to be suggesting, through your sanctimonious sermonising to the rest of us, that CSL has been a good performer because it is an ethical business.

That it is an ethical business is, in and of itself, not reason alone for CSL’s superior performance.

It’s performance is superior because it is an excellent business model and is run by people who are very astute allocators of capital.

A high level of ethics is a necessary, but not both a necessary and sufficient, condition for business success .

There are a great number of highly ethical, noble and virtuous companies that end up being woeful investments and destroying a lot of shareholder value.

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