The last question landed me in hot water with a few folks. Remember - I'm an artist. During my teenage years I was a full-blown hippie. I eschewed anything that smacked of conformity, including the activity of making and investing money. I was determined to live without the trappings of our "capitalistic society."

After the experience of divorce, I've managed to reach that goal of living without money several times. But I've also come to understand it's foolish to avoid dealing with the greenbacks, the bucks, and the cash. It's even more foolish - in my opinion - to avoid investing for the future.

The questions and comments I've received from former (and some current) friends are about rationales for my investing practices. Do I invest in companies that are environmentally sound? How do I feel about investing in companies that deal in alcohol, tobacco, and nuclear power? With the economy becoming more global, how do I feel about investing in companies that support repressive regimes? How do I feel about companies that make and sell military weapons? What about animal rights, discrimination and exploitation? Is there a company out there that is worth supporting with investments?

Many folks want to know if I've sold out. Have I become part and parcel of this unwashed capitalistic society? I reassure my friends that I'm a conscientious investor, and I tell them how to do it for themselves.

When Cora and I investigate a company's economic performance, we also screen for that company's activities. When you screen a company, you examine it systematically in order to determine suitability for your investment strategies. Cora and I learned many of our screening methods from the book, Investing with Your Values: Making Money and Making a Difference , by Hal Brill, Jack A. Brill and Cliff Feigenbaum.

This book is about "Natural" or "Socially Responsible" investing. In general, socially responsible investments are ones in which the decision to invest in a company or stock is based not just on the economics of the company, but on social and ethical considerations about the company's practices as well.

Before we read this book, we were convinced that companies following sustainable practices wouldn't cut the mustard with performance in the market. Boy, were we wrong! In 1997, the Journal of Investing devoted its entire winter issue to performance studies of companies with strong environmental practices. They found three benefits such corporate care can translate into bottom-line profits. One is the reduction of costs associated with environmental disasters or fines.

Second is the benefit that accrues from public perception of the company as caring. Third is the notion that the act of designing management practices addresses deeper and less traditional issues. This tends to strengthen the company.

"Companies that develop cross-team, multidisciplinary approaches to dealing with environmental or other social issues reap the benefits of that holistic corporate intelligence in solving other business issues. The result is often increased performance and more timely responses to all sorts of market-place challenges."

Investing With Your Values lists companies that meet screens for socially responsible investing. This makes it easy for anyone to pick a company to research further. Not every company is perfect (they're run by humans), but the lists help narrow the research.

While writing last week's article, I found a few facts at the Gallup Organization that blew me away. In a poll conducted in May 2000, 71% of the people surveyed had not heard of socially responsible investing. Only 11% of the folks who had heard about this type of investing had made the explicit decision to invest in sustainable companies. These figures amaze me. Perhaps if more folks knew about socially responsible investing, more people would invest.

There's another side to socially responsible investing, and this is one with an eye to investigation. My brother began this practice with his portfolio last year. His work as an environmentally conscious hydrogeologist led him to investigate some companies from within.

His activity combines the grassroots power of nonprofit consumer activism with shareholder activism. Any shareholder who owns at least $2,000 of stock in a company for over one year may file shareholder resolutions. Most resolutions are nonbinding requests or recommendations by shareholders to management. Resolutions appear on the company's proxy statement and are voted on by shareholders at the company's annual meeting.

There are a few faults with this practice. One is that even with a majority vote, a resolution does not become company policy without management approval. But the proponent's goal is not so much the resolution's passage as to encourage a dialogue with management that leads to changes in policies or practices.

For example: You invest in a power company that decides to build a nuclear power plant. You can bring the issue to shareholders' attention if you are against this use of company money and against nuclear power in general. This is a more powerful statement, in my opinion, than chaining yourself to a bulldozer. By the time you find those chains, your protest is a bit too late.

All of this leads back to the practice of investing. I visited BUYandHOLD's offices in New York City this spring. They have one of the easiest and most powerful ways to invest your money through E-ZVest^sm - and they are socially responsible. Find a company you believe in - or one that you want to keep your eye on - and start investing with BUYandHOLD now. The practice of holding investments for a year or more makes you an activist and long-term investor. Plus - it gives you an edge on your taxes.

Sell out? I don't think so. I'm making my statement online with BUYandHOLD. Just call me a rebel with a portfolio.

Until next week,

Linda Goin