Saturday, November 28, 2015
Al Gore Reinvents Capitalism: He Calls It Sustainable Capitalism
Al Gore lost his opportunity to become President of the United States when the Supreme Court decided that he lost Florida to George Bush. The world suffered enormously from that decision because Bush made one of the worse foreign policy decisions in history. Al Gore has prospered since losing the election. His net worth is in the hundreds of millions. He started up an investment firm that has provided a 12% return to investors over the last decade. This article describes the investment strategy (via Manan Shukla) that has proven to be so successful. It invests in firms that will produce profits over the long term and also be good for the public welfare. Capitalism needs to reinvent itself over time. Things change and capitalism must adapt. We are currently living in an era of short term greed. Businesses are operated to increase short term profits and short term shareholder value. The financial crisis provided us with an example of what can happen when short term greed governs corporate behavior. Many firms failed and shareholders suffered along with millions around the world who were affected by the collapse of the financial system. We have also seen how short term greed has caused one of the world's most successful automobile firms to destroy much of its equity and its reputation. Al Gore's investment firm is focused on long term greed. It is totally different from the ways in which most investment firms operate. Anyone who has watched one of the financial news stations, like CNBC, can witness the maniacal focus on quarterly performance and short term movements in stock prices. Gore believes that his success is being noticed by other investment firms and that some will follow his lead and help to develop a more sustainable version of capitalism.