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Why 'Good Guy' Stocks Can Help You Beat the Market
Article

Why 'Good Guy' Stocks Can Help You Beat the Market

Fortune, 2018

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Editorial Rating

7

Qualities

  • Overview
  • Background
  • Concrete Examples

Recommendation

More and more investors are disregarding the saying “good guys finish last” and flocking to the shares of companies with strong environmental, social and governance (ESG) policies. According to financial journalist Ryan Derousseau, evidence suggests that, in the long run, “good guy” businesses outperform those companies that strictly focus on short-term results. While never offering investment advice, getAbstract nonetheless recommends this informative article to investors and others assessing the stock performance of ESG-minded corporations.

Take-Aways

  • Investors were once skeptical about the stocks of companies that deploy environmental, social and governance (ESG) strategies.
  • A recent poll reveals that 50% of long-term investors now take ESG practices into account in their share assessments. 
  • A 2017 study found that firms investing in long-term tactics improved their revenue growth by 47% and their profit growth by 36%, compared to those companies with a short-term focus on earnings per share.   

About the Author

Ryan Derousseau is a financial journalist who has contributed to MoneyFortune, CNBC and other business media outlets.