What is an Activist Investor Strategy?
An activist is someone who makes efforts to improve conditions in a society for ethical reasons. Activists may be eco-terrorists, eco-activists, anti-oil/coal activists, or peace and civil disobedience organizers. The type of activism that you are interested in is going to determine what is most important to you as an individual. There are a variety of ways that you can become involved in the world around you and helping to make things better. You can get involved in community-based action, such as those groups formed by Mothers for the planet, or you can go it alone trying to do your part.
Activism can take many forms. Some groups work on a national scale trying to fight against big business, corporate interests, and for the environment. Other types of activists focus on local issues that affect their daily lives. agency -Farrar and Carlos Ortiz are two local Los Angeles-based environmentalists who run a network of over 500 Los Angeles green groups. They are considered "tea-party" environmentalists.
What is an environmentalist? They are people who focus on issues that directly affect the environment. Activists work locally to protect the environment, or they may go beyond state and federal waters to advocate for policies that would help restore and maintain the integrity of our ecosystems. People who are considered "organic" or "green" environmentalists adhere to strict regulations regarding pesticides, fertilizers, and other chemicals. They may not use power-washing methods at home, recycle, and plant trees. Some may even go as far as abstaining from commercialized animal products.
What about those who participate in white-collar activism such as those who work within the realm of the law? Activists working inside the legal profession have the privilege to participate in acts of charity and advocacy. However, it should be noted that these same activists often also practice corporate law and corporate privilege when representing clients before the court. In other words, those who claim to be environmentalists and who work within the realm of law may have some degree of teju-fication.
What about institutional investors such as banks, mutual funds, and insurance companies? Activists against these large corporations often make statements similar to those made by corporations against environmentalists. For example, some banking activists complain that big banks are participating in "foreclosure tourism," where investors swap homes for low-priced mortgages in exchange for the bank buying them.
What about those who engage in political action? agency as voter registration drives, street demonstrations, and the like all have certain privileges that regular activists do not. One of these privileges is being a non-party observer during debates in the United States House and the United States Senate. Since regular observers are prohibited from being present on the floor for more than ten seconds, and since the U.S. House and the U.S. Senate rarely ever actually do anything of substance, being a non-party observer gives these activists a way to participate in the legislative process.
So what is an activist investor strategy? Activist investing involves using investment strategies that do not necessarily benefit one particular group or another. Instead, they aim to increase the overall wealth of the target company by creating either a superior product or service, attracting new customers, providing a competitive advantage, or otherwise helping the target company achieve its goals. Some of these strategies can be used by regular investors as well, though they tend not to go as far as activists. An example of such a strategy might be an individual using funds earmarked for environmental improvements to buy shares in a targeted company that promotes green living.
There are many different types of activist investing strategies. They can range from trying to buy all or part of a company to voting against the dividends of publicly held companies. Some experts believe that shareholder activism will continue to grow in the future as corporations realize that they must obey the law, if they want to stay in business. Unfortunately, the best solution is for investors to follow the lead of other shareholders and start putting their money where their mouth is, so to speak.