Did You Feel It?

As a kid growing up in Southern California, did you feel it was a question that was often asked after there had been an earthquake.  So, I will pose the question to you.  Did you feel it?  This week there was an earthquake of sorts with a seismic shift in our culture as Wal-Mart issued a press release to inform the public that the retailer would no longer be selling handguns, handgun ammo, and certain rifle ammo.  

My goal of this blog is to not take sides on the gun control debate.  My goal is to shed light on the fact that businesses have an impact on society.  That through ownership of stocks either directly in company stock or indirectly through vehicles like mutual funds or exchange-traded funds (ETF) you are an owner of business that is using their influence in society.

I believe we will look back on September 3, 2019, as a turning point in the gun control debate in our country.  Per the press release from Wal-Mart they currently have 20% of the market share of ammunition sales in this country.  I have included a link to the full press release should you be interested in reading in more detail about Wal-Mart’s new policies.   https://corporate.walmart.com/newsroom/2019/09/03/mcmillon-to-associates-our-next-steps-in-response-to-the-tragedies-in-el-paso-and-southaven

Toward the end of the press release, Doug McMillion, the CEO of Wal-Mart had the following quote.

Finally, we encourage our nation’s leaders to move forward and strengthen background checks and to remove weapons from those who have been determined to pose an imminent danger. We do not sell military-style rifles, and we believe the reauthorization of the Assault Weapons ban should be debated to determine its effectiveness. We must also do more, as a country, to understand the root causes that lead to this type of violent behavior. Today, I’m sending letters to the White House and the Congressional leadership that call for action on these common sense measures. 

I promise when 324 billion dollar company reaches out to the politicians in Washington D.C. they are listening.  Whether you agree with Wal-Mart’s new policies or not, my goal was to point out the influence that business has in our society.  In my next blog will explore the idea of the response to Wal-Mart by owners of Wal-Mart stock.  

So, what does this mean for the average investor?  It means that ownership comes with responsibility.  It means that we need to know what we own in our investment portfolios.  We need to understand how the companies that we own are using their clout to influence society.  There will be several things that companies do that we want to be a part of and there will be other instances where companies are using their influence that would cause us not to want to be an owner. 

Only time will tell if my prediction on 9/3/19 being the date when the debate around gun control changed.  I do know this is an example of where a company used its influence to encourage a change in public policy.  My goal is to help my readers connect the dots.  Help educate them that they are owners of these companies and that ownership has responsibilities.  

I will pose the question that I often use to end my posts.  What’s in your portfolio?