What if your investments could mirror your life’s purpose? Investing isn’t just about profits and charts; it’s about purpose. Just as in life, we face deeper, fundamental questions that shape our choices and values. Exploring the four essential elements, origin, meaning, morality and destiny (OMMD), is a framework connecting life’s big questions with smarter investing.
Let’s start with Origin: Where did it all begin?
In life, the origin is about our beginnings—the universe’s creation, the spark of life and our place in it. Ancient thinkers like Aristotle and Aquinas debated whether existence began with intention or by chance, influencing our perspectives on purpose.
For companies, the origin is their DNA—the founding story, vision and culture. Just as our wiring shapes who we are, a company’s origin often sets the stage for its potential.
Companies with strong, visionary beginnings are better equipped to weather challenges and stay true to their mission, making them resilient investments. Consider Apple: Steve Jobs’ mission to put “a computer in the hands of everyday people” defined Apple’s commitment to user-focused innovation—a purpose that has driven its growth and success.
Meaning: What’s the purpose?
This question grapples with purpose and the human desire for significance. Existentialists, like Sartre and Camus, argue that life has no inherent meaning, suggesting that individuals must create their own.
In contrast, religious and spiritual perspectives often propose that life’s purpose is derived from a higher power or universal plan. The quest for meaning is central to philosophical inquiry and psychology, influencing concepts of fulfilment, personal mission and happiness.
Purpose-driven companies transform lives and create lasting impact. Businesses that solve real-world problems tend to thrive in the long term. Investing with purpose means choosing companies with deeper missions, as their focus on positive impact often translates to lasting success.
As Peter Thiel notes, “All happy companies are different: each one earns a monopoly by solving a unique problem. All failed companies are the same: they failed to escape competition.”
True business value should come from creating something people want to pay for, not playing stock games. If real owners ran these companies, the focus would stay on building long-term value, not short-term stock gains.
As we search for meaning in life, so should we seek it in our investments.
Morality: What’s right or wrong?
Morality concerns ethics, values, and how one ought to live. Philosophers like Kant and Nietzsche wrestled with questions of duty, autonomy, and the nature of good and evil.
Morality can be framed as objective, based on universal principles or subjective, tied to personal or cultural values. This question affects societal laws, personal behaviour and philosophical theories on the good life, challenging us to consider the basis for our moral codes and how they shape human society.
In business, morality matters. Warren Buffett famously said, “In hiring, look for integrity, intelligence, and energy. If they don’t have the first, the other two will kill you.”
Berkshire Hathaway stands as a beacon of this principle in action. Guided by Buffett’s unwavering commitment to ethical practices, the company has built a legacy of trust, transparency and long-term value creation. It’s not just a business; it’s a testament to how integrity fuels sustainable success and inspires confidence across generations.
Similarly, ethical practices aren’t just ‘nice to have’; they’re vital to lasting success.
Investors today consider not only a company’s profits but also its practices and values.
When management is aligned with integrity and ethical standards, it may offer peace of mind and often prove more resilient in the long term.
Finding management that thinks like shareholders you can trust is rare and difficult.
Often, you find management thinking short-term and using shortsighted ideas, such as accounting tricks, instead of focusing on building something meaningful and lasting.
Choosing stocks with strong moral grounding isn’t just wise; it’s a way to invest with integrity.
Destiny: Where is it all headed?
What happens after death? Destiny addresses questions about the afterlife, legacy, and the ultimate end of human life. Philosophical perspectives range widely—from materialist views (where death is the final end) to spiritual ones (such as reincarnation, heaven or enlightenment).
This question of destiny has guided religions, inspired existential reflections and influenced ethical decisions, as one’s belief about destiny often shapes how one approaches life, legacy, and the pursuit of a meaningful existence.
In investing, destiny means focusing on a company’s future. Legendary investor Nick Sleep uses “destination analysis” to evaluate a company’s potential, asking questions like: Where is this business headed in ten or twenty years? What is management doing today to ensure this future? What challenges could prevent it from reaching this destination?
A prominent Deloitte study revealed that purpose-driven companies experience significantly higher market share growth and expand at three times the rate of their competitors, while also fostering greater employee satisfaction.
Additionally, analysis by the Corporate Board and EY Global Leadership Forecast suggests that purposeful companies outperform the stock market by 42%.
Together, these fundamental questions form the bedrock of philosophical thought and personal beliefs, urging each of us to confront our values and purpose. Your values define your life. Let them define your investments too.
Awet Ghirmay, Head of Investment Research
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Risk warnings
The value of investments and the income derived from them may fall as well as rise. You may not get back what you invest. This communication is for general information only and is not intended to be individual advice. You are recommended to seek competent professional advice before taking any action. All statements concerning the tax treatment of products and their benefits are based on our understanding of current tax law and HM Revenue and Customs practice. Levels and bases of tax relief are subject to change. This blog is based on my own observations and opinions.
