Don't protest, Disinvest

Don't protest, disinvest
Or how to hit the Ahmadinejads of this world where it hurts.
Laura Goldman 24 Sep 07 15:57

If you watched Iranian President Muhammed Ahmadinejad be given a platform on top-rated news magazine “60 Minutes” for his Holocaust denying, Israel destroying, nuclear bomb making views, and know that Columbia University is giving him the same platform and respect that it accords all world leaders, you may well feel that, to paraphrase Howard Beal, you are "mad as hell and do not want to take it anymore.”
Besides the futile protest of throwing the remote at the television and complaining to Columbia University, there is a meaningful way of voicing disgust with Ahadinejad that will eventually hurt him where it hurts most -- in the pocketbook.

I have called before for divestment from companies that do business with countries that sponsor terrorism such as North Korea, Sudan, Syria, and Iran. Now seems an appropriate time for renewing that call. You can choose to protest with your investment dollars, and divest from the stocks of companies such as Bank BNP Paribas, oil producers Total, Repsol, Statoil, and Royal Dutch, car manufacturer Hyundai, Coca Cola, Siemens and Sinopec.

Missouri State Treasurer Sarah Steelman said, "I made the decision to divest after learning that the State of Missouri was doing business with BNP Paribas which lent $1 billion dollars to Iran. We kicked them off our broker-dealer list and put in place policies that said we won't do business with companies that do business in Iran.”

California Assemblyman Joel Anderson said, “When you're looking at the war on terrorists, this is one of the best weapons we have -- just defunding them.''
As I have pointed out before, An individual can participate in terror free investment by purchasing the world’s only certified terror free mutual fund, Roosevelt Anti Terror Multi Cap fund. This macroeconomic fund has a five-star rating, and is considered low risk by Morningstar. Despite the recent market turmoil, this fund incredibly has returned over 20% for the year ending August 31, 2007. The average annual return for the last three years is 17.82%.

There is another reason to avoid companies that does business with Iran. The market could be underestimating the global security risk of these companies. The SEC is already on the case.

The SEC asked Ford in a July 5 letter “If its share value and reputation were not being compromised by its activities in Syria, Iran and Sudan.” Marathon oil was also questioned.

Exercise your shareholder rights and vote stocks with terror links off your investment island. There is something that you can do to stop terrorism from the comfort of your home.


Laura Goldman worked on Wall Street for over twenty years for such firms as Merrill Lynch and UBS Warburg. She now runs her own investment advisory, LSG capital, from Tel Aviv. She is an independent commentator, and her views do not necessarily represent those of "Globes".
Published by Globes [online], Israel business news - www.globes.co.il - on September 24, 2007
© Copyright of Globes Publisher Itonut (1983) Ltd. 2007 Used by permission of the author.