Recently, we’ve seen a rash of public trust funds, from blue states, divest themselves of investments in firearm manufacturing businesses. More recently, CalPERS, the country’s largest public pension fund, announced that it would divest its holdings in Smith and Wesson and Ruger. An odd decision since Smith & Wesson is trading at a price to earnings ratio of around 11 with $0.83 earnings per fully diluted share. What the heck is going on here folks?
Access to capital is crucial to the success of any business and I’m deeply troubled by the fact that organizations, who are essentially influenced by their respective States, are working in concert to destroy a business sector. Classical example is the recent decision by Colorado to pass HB13-1224 limiting standard magazine capacities; all in the interest of public safety. Yet, they’ve legalized marijuana. I guess if you’re stoned you’re not a public safety hazard. Really? Somewhat inconsistent don’t you think?
Maybe, what the rest of America should do – at least the ones that haven’t lost their minds yet – is ask your elected official, state and local, not to purchase bond issues from states and municipalities that infringe on the 2nd Amendment rights of its citizens. Extend that challenge to your financial institutions, fund managers, IRA and 401K managers.