How to Invest in Socially Responsible Company Stocks

Socially responsible investing is more common than most people think. For a lot of investors, corporate social responsibility is just as important as risk and returns. Without adequate knowledge, navigating through corporate financial information can be intimidating. With a little time and effort, you can make these investments on your own instead of paying someone else to do it for you.

Instructions

Difficulty: Challenging

1. Make a list of 10 socially responsible issues in order of importance. If the environment is the most important to you, put it at the top of your list.
2. Decide on your top five issues. If you can't find socially responsible companies to match your top five issues, move on to the next five.
3. Find socially responsible investments and corporations as they pertain to your top five and make a list of names and ticker symbols.
4. Research the companies you have chosen. Keep it simple and only note basic information such as how the investment is socially responsible or how the company practices corporate social responsibility.
5. Research financial information. Again, keep it simple. Obtain prices, past performance history and total returns.
6. Make a decision. At this time, decide how much money you want to invest in each chosen investment instrument.
7. Choose a broker or invest on your own. Take time to decide whether you would like to hire a broker to make your investments or whether you feel confident enough to do it on your own.

Tips & Warnings

• Keep it simple. Gathering too much information while researching will be time consuming and discouraging.
• Set aside time. Make sure you have the time to research when deciding to invest on your own.
• Take your time. Don’t rush into any decisions. This is your hard-earned money, after all.
• If you don't have the time, hire someone. Paying someone a commission is better than losing all of your investment because you didn't have time to do the research.
• If you don't have the patience, hire someone. If you are the type of person who gets jumpy at every price movement, hire someone to watch your investment for you.
• Think long term. Steady returns on investments are made over a period of years, not days or months.