The Values Behind My Portfolio
Where Diversity, Equity, and Inclusion Are Always Welcome
I understand diversity, equity, and inclusion, not as buzz words or descriptors of a particular group of people which are seen and treated as somehow lesser than others. I see DEI as a mindset and values which are foundational for organizations, systems, and especially financial portfolios which seek security, growth, and innovation. As mediocrity loves mediocre with its focus on control, compliance, and fear, it is possible to see its action as reminders of how powerful and threatening diversity, equity, inclusion can be. it isn't time to retreat but to double down on these winning values as guiding lights towards a better future.
Diversity in dna, culture, skills, mindsets, etc is a human super power. We have evolved to maximize cooperation which builds upon our different strengths. The old adage of "don't put all your eggs into one basket" says it all. I have seen its value in my own life. My life would be much more boring and limited by blinders without the gift of diverse opinions and experiences others have so generously shared. The importance of developing a diverse financial portfolio is a constant refrain in every book, podcast, talk with financial advisors. For an angel investor, placing multiple investments into different start-ups mitigates the risks of a single or even a couple of failures. For all of these reasons: Diversity in types of investments and across different companies will be used for expanding options and reducing the risk exposure.
Equity, in the DEI context, is often the most difficult to practice because it is different than equality and requires a mindset of abundance and evaluation of larger process goals. Financial equity is defined as ownership with goals to grow the value of that ownership. One of the biggest challenges to angel investing in "family/friends," pre-seed, and seed rounds is avoiding dilution of ownership. Who does not want to get into the "game" in a way which values, continues, and even enhances their personal assets and strengths? Equality recognizes that we all deserve to be invited, we all deserve to know the rules, and we all deserve to be held accountable to be our best while equity understands that we all are not exactly the same. The invitation means less or more if you are able to take it. The rules often assume that everyone is playing the same game, on the same field in the same game with the same equipment and skill level: weak/strong, fast/slow, good/bad are often defined by those who benefit the most by the definition. If the measurement of money is the only way to measure a wealth of assets, those with proximity to monetary wealth will always "win." When the measurement of wealth and assets expands to recognize the value of personal, emotional, spiritual, social, and financial wealth/assets, we are more accurately measuring wealth and assets while expanding who can participate and benefit from the market. For these reasons: Building equity in my portfolio is to seek value across multiple measurements and asset types in a manner which enhances rather than extracts.
Inclusion opens doors, extends invitations, and recognizes the potential when two or more are gathered. Rather than fearing the need to isolate for protection and building walls, inclusion welcomes fresh perspectives and opportunities found in opening new doors. When I served as Vice Chair on the SC First Steps Board, the state put together a multi-agency proposal for federal early childhood funding with the goal of no locked doors. Rather than turning people away the focus was to meet them where they were. Bringing others in builds markets and increases possibilities. Rather than fearing what could go wrong, inclusion makes space for what could go right. At its best, it recognizes the potential not only in holding a door open but also in the gratitude of being another's guest. Dignity is a God given right which everyone deserves. For these reasons: An inclusive portfolio understands the potential found in weaving a web of relationships which minimizes risks and a rising tide to lift all boats. Come on in, the water is warm.
My portfolio seeks to honor these three values by:
Including public and private companies through a variety of financial tools.
Acknowledging the power law.
Creating opportunities for unicorns while appreciating the determination of a focused, golden retriever.
Not being afraid of or limited by the responsibility to pay taxes.
Having faith in others.
Recognizing the value of providing the benefit of the doubt: trust but verify and expect accountability rise or fall.
Finding the win, because there is always a win, even if it is simply gaining a new perspective or learning from a challenge.
Respecting the privilege of having a safety net and extending its reach.
Thinking exponentially and for 7 generations.