Do I Have To Invest In Oil To Make Money Now?

I like to make money. But at what cost? Last week, the New York Times ran a piece about the changing tides of the market and how investors are increasingly moving out of tech and into old school sectors like oil to keep the profits flowing. According to the Times, the S&P 500 is up 14.4 percent so far this year and shares of Marathon Oil have more than doubled, making it the biggest gainer in the index in 2021.

Oil? Really? My Prius is 11 years old with 95,000 miles on it and when it dies, I’m determined to get a used electric something to do my part to stop global warming. Now you’re telling me I’ve got to invest in oil to keep my portfolio moving forward?

To be fair, the article goes on to explain that financial stocks are also suddenly en vogue with shared of Goldman Sachs up 40% and Wells Fargo (ugh!) up 50%. Credit card companies Capitol One (+56%) and American Express (+37%) are also faring well. Still, if we’re heading into a prolonged period where we can’t get rich investing in the next big tech thingy, I’ve got to think long and hard about what I’m willing to invest in.

It might be easier to start with a product instead of a company. Take Volkswagen, for example. After they got caught with their hands in the diesel cheating cookie jar, I vowed never to buy a Volkswagen again. But I really want an electric SUV and Tesla’s are so damn expensive. Do I go back on my word and buy a used Id.4 in a few years? At a savings of more than $20,000, it’s tempting.

Maybe what I need is a list of rules that govern my investment decisions. I guess these rules exist in my head but maybe I should write them down because when you get old if you don’t write things down, you forget them.

Rule #1: Never invest in companies that knowingly kill people with their products.

Rule #2: Never invest in companies that discriminate (or as my daughter used to say, ‘scriminate) against people.

Rule #3: Never invest in companies you’d be embarrassed to tell your mom you own.

Seems pretty simple. Here’s how that might play out in the real world.

Companies/Sectors  I Won’t Invest In No Matter What

Oil: You just can’t, right? I mean if the planet’s survival is about our ability to move to a clean energy future, you can’t invest in an oil company, right? Unless the oil company transforms itself into a clean  energy company  (BP? Shell?) but even then, can you really trust them?

Tobacco: Those execs just look so evil.

Cruise Lines: Who knew cruise ships were some of the biggest emitter’s of fossil fuels on the planet? Read this. It’s crazy. Can’t invest in cruise lines even if there’s a chance to turn a tidy profit.

Pornography: I just don’t want Nicholas Kristof showing up on my door to yell at me. Speaking of which, maybe that’s what the world of investment needs, a Cameo-like service where every time you’re about to invest in a company that’s bad for the planet or your community, Nicholas Kristof sends you a video scolding your poor decision making.

NBA Players’ Production Companies: It’s annoying that after you made hundreds of millions playing basketball you’re now starting a media company. Really?

Ebay: It’s only trading at 16x earnings but what else can EBAY become other than EBAY? Can the brand reinvent itself? No, right?

Guns & Weapons: Don’t buy shares of Lockheed Martin. Just don’t. If you make money on the sales of more guns, that’s bad.

It’s not that hard to invest in companies that aren’t evil. You just have to spend a little time and think about it.