New Study: Fossil Fuel Divestment Leads to Financial Fiasco

IPAAWe’ve previously written about the so-called fossil fuel divestment movement–a push to get investors to dump stocks in oil and gas companies in a bid to bankrupt those companies (and send us all back to the energy Stone Age). Major universities hold huge investments of all kinds, including in fossil fuel companies. The crazies are pressuring them to dump those stocks. To their credit, the leaders of Cornell University said they will keep their fossil fuel investments (see Cornell University Rejects Fossil Fuel Divestment Scam). It’s a good thing they did. A new study by the Independent Petroleum Association of America (IPAA) says even if you overlook how an investment portfolio’s value drops after dumping fossil fuels, just the transaction expense of trading away all of those investments can cost billions. In other words, if misguided organizations and investors dump fossil fuels, they’ll lose big money–in brokerage fees. Last time we checked investors invest to make money, not lose it. Here’s the low down from the IPAA…

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