Issue #9: Ethics and Feelings Won’t Make You Money in Investing
Unpacking how ethics influence investment returns
Reading time: 2 minutes
You can hold personal biases, form strong opinions, or avoid investing in certain industries for ethical or religious reasons. That’s your choice, and it’s valid.
But here’s the hard truth:
Markets don’t care about your feelings. The numbers keep moving whether you agree with them or not.
Take Lockheed Martin ($LMT) and Northrop Grumman ($NOC).
These companies thrive on something no one wants to think about—conflict. Every war, every military buildup, every rising tension fuels their profits.
Lockheed Martin and Northrop Grumman aren’t just selling iPhones; they’re selling power, control, and fear. Fighter jets, missile systems, and cutting-edge weapons roll off their assembly lines because governments keep writing bigger checks. It’s grim. It’s uncomfortable. But that discomfort doesn’t stop their growth. It actually powers it.
Another example is Constellation Brands ($STZ). Their success story is filled with every celebratory toast, every Friday night beer, and every quiet glass of wine after a long day.
But behind the glitter of the alcohol industry lies addiction, broken lives, and long-term harm that most people don’t want to face. Technically, alcohol causes harm just as weapons do—though the destruction often plays out slower and more subtly.
Yet the sales climb higher. Why?
Because people keep buying, and the company knows how to meet that demand.
These businesses don’t need our approval. They operate on what works, not what feels right. And as much as we might recoil from their impact, the numbers don’t care.
If you had put aside your ethics and invested in these companies in 2010, here’s what you’d have seen:
Lockheed Martin delivered 200% more than the S&P 500.
Northrop Grumman outperformed the S&P 500 by 436%.
Constellation Brands grew over 1,000% more than the S&P 500.
These are absolutely not minor wins. They’re massive, life-changing returns.
Does this mean you should go out and buy defense or alcohol stocks right now?
No, that’s not the point.
The point is that your emotions, biases, or ethical concerns won’t change the numbers. Companies like these thrive because they meet demands—whether or not we agree with what they produce.
Investing isn’t about feeling good. It’s about making informed decisions based on data. The data never lies.
Besides, you can use that extra money to do good—whether it’s for your family, your community, or the causes you believe in. The market always rewards results, and it’s up to you to decide how to use those rewards.
Thank you so much for reading! Catch you tomorrow!