6

kbog comments on Impact Investing - A Viable Option for EAs? - Effective Altruism Forum

You are viewing a comment permalink. View the original post to see all comments and the full post content.

Comments (17)

You are viewing a single comment's thread. Show more comments above.

Comment author: kbog  (EA Profile) 12 July 2018 03:04:22AM *  1 point [-]

Unless you assign relatively high priority to the cause that is addressed by the company, I think it's appropriate to suppose that other impact investors are over-valuing the social impact. Also, since other impact investors don't think about counterfactuals, they are likely to greatly overestimate the social impact. They may think that when they invest $1000 in a different company, they are actually making that company $1000 richer on balance... when in reality it is only $100 or $10 or $1 richer in the long run, due to market efficiency. I don't think markets are generally inefficient, just a bit, sometimes, it really depends on how you define it.