Investing with Purpose: Supporting Society and Communities (Farm Stock Example)

Investing, even on a small scale, is important for building wealth over time. It also serves another purpose. Markets are shaped largely by interest and expectations of return. There is investment that fuels industry growth, and there is investment in the stocks for financial return (Investment in activity or investment in stocks). How and where we invest has implications for whether money makes its way back into communities and what industries are fostered. Consider, for example, small and organic farming stocks (It could be just small farm, or small business, or other.).

A penny earned can be a penny invested.

Maybe we should start
thinking about investing
in communities again 
and getting young people
 back on farms and downtowns
chuck full of start-ups.

Escanaba is a small
town that has experienced 
multifaceted growth.
Investment can be used
to enhance community
 foundations.

I dabble in the market from time to time outside of retirement accounts. It isn’t a lot of money, but when my penny jar fills up, I cash it in and buy something that can generate a return rather than letting it sit and lose value. In my mind, I can either invest in stocks that create bubbles and quick returns, or I can invest in industries I’d like to see develop and grow. Life is short and I can't take money with me.

On a larger scale, where we invest collectively often determines which industries receive funding, and therefore which expand or decline. That isn’t always based on what benefits society, but on what yields the highest returns. This is part of the reason why so much money flows abroad while we struggle to create mechanisms that help people invest in their own hometowns, communities, and country (Some of this problem can be solved by better local investment mechanics and pathways.).

Recently, I went looking for stocks focused on small farmers and sustainable farming in the U.S. There are a few funds where you can invest any amount—from a couple dollars a share to hundreds or thousands. I buy these stocks mostly to explore ideas and understand how they work, so don’t take any stock-buying advice from me; those decisions are entirely yours.

I ended up investing in a fund—not because the name matters, but to see how the stocks in it might grow or decline. As a small experimental portfolio, it has grown about 120% since I started it. One company I chose produces local food greens in the U.S. and appeared to have strong practices. Its performance has been relatively flat despite achieving up to 19% revenue growth and reducing costs significantly. To me, a company that has revenue, continually lowers expenses, is U.S.-based, and focuses on sustainable practices is worth watching, even if it doesn’t attract much market attention. After all, investment can create entirely new markets when enough money moves in a certain direction.

In this case, my penny jar was worth about the cost of a nice dinner. Instead of spending it, I bought a few stocks so I could observe and learn from them.

The point here is simple: even small amounts matter. Invest to build wealth, think long-term, and invest in what aligns with your values, interests, and communities.

This article is interesting if you want to know more about small farms,

USDA Small Farms