At Common Interests, we start our investment process in the same place as the rest of the industry: with the fundamentals of the companies we invest in. We look at balance sheets, P/E ratios, and the rest of each company’s financial statistics. The difference comes when we overlay our values system on the investments we choose. This extra layer of risk management is the core of our practice and an extension of who we are as people.
We view long term investing as casting a vote, and for the core of our portfolios, we refuse to cast that vote for companies that are messing up our planet, treating their people in ways we wouldn’t want to be treated, or “cooking the books”. The generic way we describe our screening process is ESG, Environmental, Societal, and Governance.