While thin-skinned millennials and socialist apologists love nothing more than to vilify capitalism, the truth is there is no greater force for good than an honest free market.

It is capitalism that allows us to live long and comfortable lives. It is because of capitalism that we have indoor plumbing, 24/7 access to heat and electricity, and access to state-of-the-art medical facilities.

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Most investors understand the power of capitalism. We understand the value of creating and protecting wealth. So who better to change the world — and make money at the same time — than investors? That’s what Warren Buffett is doing.

The Giving Pledge

In a recent interview with Yahoo! Finance, the Oracle of Omaha said that excessive wealth doesn’t do much for the rich and their families.

There comes a point where money really has no real utility. You can use it to show off, but you can’t do much else with it. I don’t think it’s good for your family. It can do wonders for people around the world.

Back in 2010, Warren Buffett, along with Bill and Melinda Gates, founded the Giving Pledge, which is a commitment by the world’s richest people to give away more than half their money to philanthropic causes.

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While I applaud the selfless nature of this pledge, I would argue that this money could be better spent by investing in good causes as opposed to just donating to them. There is a difference, and this difference can be illustrated in the power of socially responsible investing.

The Positive Power of Capitalism

Socially responsible investing still gets a bum rap. But the idea that social responsibility and wealth creation are disconnected is absurd.

As a socially responsible investor, you would likely to invest only in opportunities that can make me a lot of money while doing a lot of good at the same time.

Renewable energy is the perfect example.

Solar, wind, geothermal, electric cars — you name it. But what makes these investments even more valuable is that the companies in which I invest are helping us clean up the environment.

While some still like to mock such a gesture as a way to showcase their ignorance and arrogance, guys like us are getting rich by investing in clean energy. 

Courtesy: www.wealthdaily.com

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