Classification

Terms used in the TANHI investment courses

TANHI INVESTMENT CLASSIFICATION™

Unaware (Extractive) Investing

  • The vast majority of investing especially via mutual funds
  • ESG and SRI mutual funds are a marginal improvement but they mostly still fall under the rubric of unaware investing
  • Most publicly traded companies tend towards extraction

Aware Investing™

  • Individual stocks or bonds
  • If investing in mutual funds it requires full awareness and transparency to the ultimate components of those funds

No-Harm Investing™

  • Requires full awareness and transparency to the ultimate components of one’s investment
  • Requires knowledge of no-harm as opposed to lack of knowledge of harm
  • Hard to achieve for global multinational corporations and most publicly traded companies
  • Municipal bonds, CD of trusted financial institutions (e.g. credit unions, regional banks), project-based bonds, peer to peer lending, Treasury securities, Agencies securities can be considered no harm

Positive Investing™

  • A no-harm investment that is creating positive outcomes either environmentally or socially
  • Most likely requires concessionary capital (below market rate)
  • Some of the compensation for risk comes in the form of social or environmental returns
  • Positive risk-adjusted return

Restorative Investing ™

  • At the intersection of investing and philanthropy
  • The primary/exclusive motivation for investing are non-financial (“return agnostic”)
  • Positively addresses a social or environmental problem
  • Strongly relates to your Personal Investment Compass
  • Negative risk-adjusted return
  • Should be viewed as a spending decision
  • Like a recoverable grant

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