Podcast Episode 226This episode explores the topic of Ethical Investing.
One of the biggest reasons I see talented, educated Latinas delay investing has nothing to do with money.
It has nothing to do with income.
It has nothing to do with the stock market.
It has everything to do with identity.
Over the past several years, I’ve heard versions of the same question hundreds of times.
“I want to invest, but I don’t want my money supporting companies that hurt people.”
“I care about my community.”
“I don’t want to participate in capitalism.”
“How do I know I’m investing ethically?”
These aren’t bad questions.
In fact, I believe they’re some of the most thoughtful questions a new investor can ask.
But I also believe they’re incomplete.
Because hidden underneath them is an assumption that quietly keeps many first-generation Latinas from building wealth: the belief that ethical investing requires finding perfect companies.
It doesn’t.
There is no perfectly ethical company.
There is no perfectly ethical supply chain.
There is no investment portfolio completely free of trade-offs.
The goal of conscious investing isn’t perfection.
The goal is intentionality.
Learning to invest doesn’t mean abandoning your values. It means understanding how your money participates in the world and making increasingly informed decisions about where you choose to allocate your capital.
That’s the conversation we’re having in Episode 226 of the Say Hola Wealth Podcast.
Whether you’ve never invested before or you’ve been wondering how environmental, social, and governance (ESG) investing works, this article will help you understand the basics of ethical investing, index funds, ETFs, expense ratios, and why ownership, not perfection, is one of the most powerful forms of financial participation available to our communities.
What Is Ethical Investing?
Ethical investing is an investment approach that considers more than financial returns. Rather than evaluating a company solely on revenue or profitability, ethical investors also examine whether that company aligns with their personal beliefs and long-term values.
For some investors, that means avoiding industries such as tobacco, firearms, or gambling. Others prioritize companies committed to renewable energy, diversity in leadership, employee well-being, or responsible corporate governance. Faith-based investors may use yet another framework when deciding where to invest.
The important thing to understand is that ethical investing is not governed by one universal definition. Two investors can share similar values and still build very different portfolios because each person weighs social, environmental, and financial priorities differently.
This is why searching for the “perfect” ethical investment often becomes frustrating. Every investment involves trade-offs, and every fund manager applies a different methodology when selecting companies.
The Difference Between Conscious Investing and Perfect Investing
One of the most transformative lessons I’ve learned as an investor is that consciousness and perfection are not the same thing.
Many of us were raised believing that if we care deeply enough, we’ll eventually find the perfect answer—the perfect employer, the perfect neighborhood, the perfect financial strategy, or the perfect company to invest in.
Real life doesn’t work that way.
Today’s global economy is incredibly interconnected. Every product we purchase passes through countless hands before it reaches us. Raw materials are extracted in one country, manufactured in another, assembled somewhere else, transported across oceans, stocked by retailers, and finally purchased by consumers.
Very few of us could explain every decision made along that supply chain.
Think about a typical morning. The coffee brewing in the kitchen, the smartphone charging overnight, the laptop used for work, the groceries in the refrigerator, the running shoes by the front door, or the electricity powering the lights all exist because thousands of companies and workers contributed to bringing those products into our homes.
Can anyone honestly guarantee that every decision made throughout those supply chains perfectly reflects their values?
Probably not.
That’s exactly why I challenge the belief that investments must meet a higher moral standard than everything else we consume.
Rather than asking whether an investment is completely pure, I encourage my clients to ask a different question:
Does this investment move me closer to living consistently with my values?
That question changes everything.
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You’re Already Participating in the Economy
One of the most common arguments I hear is, “I don’t want to participate in capitalism.”
I understand where that feeling comes from.
Many communities, including ours, have experienced economic systems that created inequality rather than opportunity.
But choosing not to invest doesn’t remove anyone from those systems.
We still buy groceries.
We still pay rent or mortgages.
We still use the internet.
We still rely on electricity.
We still purchase products manufactured by publicly traded companies.
Participation is already happening.
The difference is whether we participate solely as consumers or whether we also become owners.
Ownership fundamentally changes our relationship with the economy. Consumers exchange dollars for products. Investors purchase ownership in businesses, allowing their money to grow alongside the companies they believe will create long-term value.
That distinction matters because ownership creates influence.
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Let’s Build Our Cash Libre Life Juntas,
Luzy D King
