What are the ethics of investing in energy/oil?

revoltub

revoltub

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I was rewatching The Big Short. And one of the lines that always sticks out to me is when Brad Pitt tells the two guys he helped to stop acting happy for betting against the US economy and the people.

Makes sense. But what about investing in oil, something pretty essential for most people. If you invest in oil, you are hoping that the price will go up so you make a profit. However higher gas prices hit the peoples pockets.

What is the ethical difference here? Is it that investing is just considered a more positive sentiment, and in the case of oil investing, a more obtainable way for people to get some money back from the high gas prices they would have to pay?

i guess the same goes for healthcare. It just seems like the ethical questions for participating in those markets are different from investing in say, Walmart.

What is the main sentiment around these topics in the investing/trading world?
 
The energy companies are going to make boatloads of money regardless. It's up to you if you want to enjoy some of the profits or if you want to sit on the sidelines. It's a moral choice you have to make I suppose. Like I wouldn't invest in a company that sells fentanyl to teenagers no matter how much money I could make. Nor would I invest in a company like Monsanto who is poisoning our crops.
But I invest in something like Apple who makes a ton of money off cheap labor and suspect labor practices.
 
TheNinja said:
The energy companies are going to make boatloads of money regardless. It's up to you if you want to enjoy some of the profits or if you want to sit on the sidelines. It's a moral choice you have to make I suppose. Like I wouldn't invest in a company that sells fentanyl to teenagers no matter how much money I could make. Nor would I invest in a company like Monsanto who is poisoning our crops.
But I invest in something like Apple who makes a ton of money off cheap labor and suspect labor practices.
Click to expand...

yeah that makes sense. Probably some shady practices in all industries
 
revoltub said:
I was rewatching The Big Short. And one of the lines that always sticks out to me is when Brad Pitt tells the two guys he helped to stop acting happy for betting against the US economy and the people.

Makes sense. But what about investing in oil, something pretty essential for most people. If you invest in oil, you are hoping that the price will go up so you make a profit. However higher gas prices hit the peoples pockets.

What is the ethical difference here? Is it that investing is just considered a more positive sentiment, and in the case of oil investing, a more obtainable way for people to get some money back from the high gas prices they would have to pay?

i guess the same goes for healthcare. It just seems like the ethical questions for participating in those markets are different from investing in say, Walmart.

What is the main sentiment around these topics in the investing/trading world?
Click to expand...
Nothing unethical about shorting an industry or investing in oil.

Shorting in the context of The Big Short only means he bought a credit default swap, i.e. an insurance policy against a security composed of dodgy mortgages. He didn‘t influence the default rate on these garbage assets.

Buying oil and gas stock means you profit when these companies profit. Profit in a company means less money in the client‘s pocket. Like in every fucking industry.

Don‘t let a bunch of crying karens who have no clue about finance tell you what is right or wrong.
 
KBE6EKCTAH_CCP said:
Nothing unethical about shorting an industry or investing in oil.

Shorting in the context of The Big Short only means he bought a credit default swap, i.e. an insurance policy against a security composed of dodgy mortgages. He didn‘t influence the default rate on these garbage assets.

Buying oil and gas stock means you profit when these companies profit. Profit in a company means less money in the client‘s pocket. Like in every fucking industry.

Don‘t let a bunch of crying karens who have no clue about finance tell you what is right or wrong.
Click to expand...

Yeah I was able to get a better idea of what a credit default swap was this time around. It seems then that the line Brad Pitt says in the film is something for dramatic purpose rather than how investors really feel about the morals.
 
I don't know what the overall sentiment is but ultimately it's up to you where you draw the line. It's nigh impossible to invest or live "cleanly". The devices we're using probably have conflict minerals in them. Even if you just invest in the index funds you're getting exposure to all sorts of stuff.
 
Most people that invest, have some sort of investment in a mutual fund/ETF that has an energy/oil company in it. Also who cares. You don't let emotions get in the way of investing.
 
TeTe said:
Definitely not. Especially when consider everything it's used for. Gotta makes millions of cell phones every year. Packaging, rubber, plastic products, etc.
Click to expand...

The oil is fucking everywhere, it's the micro plastics trapped in your testicles.......and the dashboard of your car..... This is way past an ethical problem.......
 
revoltub said:
Yeah I was able to get a better idea of what a credit default swap was this time around. It seems then that the line Brad Pitt says in the film is something for dramatic purpose rather than how investors really feel about the morals.
Click to expand...
The Pitt character was some kind of genius trader turned Kibbutz hippy wasn‘t he? I mean he also recommended buying seeds, because it was the next currency, lol.
 
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