Senator Mark Warner Sees Market “Renters” and We Need “Owners”

warnerPolitifact found that Sen. Mark Warner’s comment that average stock holding periods have changed from over 8 years in 1960s to 4 months currently is “Mostly True.” After looking at NYSE data, it is a bit more accurate to say that the holding period during the 50s and 60s was closer to 6 years and today’s estimates come in around 6 months.

So what’s the big deal? Senator Mark Warner points out a related trend: Corporations now invest little of their profits back into their company. During the 50’s and 60’s, the reinvestment rate was closer to 50% and now 95% of profits go to dividends and an unhealthy infatuation with stock buybacks that also happen to boost executive bonus payouts.

It’s hard to convince management to focus on the long term when their owners are suffering with a bad case of short-termism. <cough, cough>

 

Photo by Alex Guillaume on Unsplash

10 Virginia Companies Make Fortune’s 100 Best Companies To Work

High trust culture isn’t just a feel-good perk. Great Places to Work reports that decades of research shows workplaces with high-trust cultures see higher levels of innovation, customer and patient satisfaction, employee engagement, organizational agility, and offer higher shareholder returns to investors. Great Places To Work teamed up with Fortune to recognize superior American companies. Here is the list of Virginia-headquartered companies who made the list:

#12: KPMG
#17: Capital One
#23: PwC
#26: Hilton
#29: Ernst & Young
#47: Navy Federal Credit Union
#50: Mars, Incorporated
#74: Rackspace
#77: Carmax
#88: Accenture

You can see Fortune’s entire list of 100 companies here.

Small and mid-sized Virginia companies (15 – 1000 employees) looking to assess their own employee culture should look to a free service. This “Best Places To Work In Virginia” survey is sponsored by the Virginia Chamber.

All of this analysis around trust is especially important during a time when the 2017 Edleman Trust Barometer reveals that trust is in crisis around the world.

10 Signs that SRI Investing is Hitting a Tipping Point

  1. US Trust study finds 85% of millennials want to invest with purpose.

  2. The US Sustainable Investment Forum reports 33% growth in SRI strategies in two years’ time from 2014 to 2016.

  3. The same report suggests that SRI filters apply to just under 20% of US equity assets, but there’s good reason to believe that we’re still in the early innings of this ballgame. For comparison, Bank of America Merrill Lynch report suggests that in Europe, SRI allocations are closer to 60%.

  4. GA Institute reports that the percent of S&P 500 companies publishing a sustainability report has gone from 20% to 82% between 2011 and 2016.

  5. Impact Investing is the “top trend” in philanthropy for 2015 and 2016.

  6. The Ford Foundation committed $1 billion to mission-related investments.

  7. Japan’s Government Investment Fund recently allocated 1 trillion yen ($8.9 billion) to socially responsible investments. Ho-hum say the Norwegians, the world’s largest sovereign wealth fund instituted their ethical guidelines in 2004.

  8. America’s largest asset owners, including Blackrock and even sleepy Vanguard, are stepping up their commitments to shareholder advocacy on ESG issues.

  9. The Department of Labor now has clear guidance that ESG can and should be considered in employer sponsored retirement plans.

  10. The Pope is now talking about impact investing.