Long-Term Investments

Abstract

Investments account for future prospects. Long-term investment are based on discounting future anticipations. Socially Responsible Investments (SRIs) were historically focused on long-term considerations. Long-term investment holds socio-psychological and leadership advantages, such as altruism benefits and first-mover gains. The UN and the private sector are pivotal in ingraining a long-term view into the finance world. In the age of global warming, attention for intergenerational aspects of future investments has gained unprecedented momentum. Political divestiture with a long-term investment view is one of the most recent trends in investment policies, foremost as practiced in carbon divestiture. Future research may integrate social, environmental and intergenerational aspects in long-term financial discounting calculus.