Paul Tudor Jones rolls out “JUST” ETF with Goldman Sachs in effort to ‘modernize capitalism’

Today, June 12, 2018, legendary macro investor Paul Tudor Jones did a commercial free interview on CNBC to promote tomorrow’s rollout of the new ETF “JUST”. Jones is someone I have followed for decades and is someone worthy of respect as he has built a multi-billion dollar fortune while privately preserving thousands of acres of land around the globe. Jones has long had the confidence of life and business strategist Tony Robbins and recently opened offices on Palm Beach, Florida.

JUST Capital – Ranking America s Most Just Companies

“JUST” is based on backtesting the performance of socially responsible companies based on a nationwide poll of Americans to their definition of what it means for a company to be socially responsible. Based on that backtesting it is projected to outperform the Russell 1000 and the S&P 500. As one can imagine, there is a wide array of opinions about social investing and conscious capitalism.

First and foremost, there is nothing wrong with conscious capitalism and I personally would subscribe to many of its standards. Conscious capitalism is completely in tune with the base term of capitalism though some try and twist its true meaning. Before going further, I welcome JUST to the ETF stage so this is simply a brief examination of Jones’ interview and whether we need to “modernize capitalism.”

During the interview, Jones took issue with the Milton Friedman philosophy that the responsibility of a corporation is to return profits to its shareholders. Jones said, “When Milton Friedman said, that tax rates had just come from 91 percent to 70 and income inequality was one-fifth of what it is today. You can see how it was relevant at the time but fast forward to where we are today, it’s a different deal.”

I would argue that trying to redefine “capitalism” or “modernize” the word is an unneeded exercise. People need to understand what capitalism actually is as opposed to the distortions made by many. Capitalism is only the free voluntary exchange of value from one to another. That is it. There is no other valid definition. Where we run into the weeds is when we confuse cronyism and government force with capitalism. When a company uses government force or taxpayer money in the name of “economic development” to advance itself over its competition then that is NOT capitalism. When are corporate uses fraud and other deviant means to profit, then that is NOT capitalism.

An interesting fact not asked of Jones during the interview is that arguably the best investor alive today is Warren Buffett and he has long held through his Berkshire Hathaway (BRK) the same opinion of Friedman. Buffett holds that it is the duty of the corporation to profit well, compensate employees & stockholders, and through an employee’s personal income and investor’s profits of stock to donate to their preferred charity. It is not the corporation’s responsibility to be charitable, but to maximize profits. BRK and Buffett do not believe corporations should give charity directly but it is expected of their employees and shareholders to perform charity on their own terms.  So, while Buffett is personally the single most charitable man in America, one would be hard-pressed to find any meaningful charity from BRK. It is because BRK has grown to such a level that Buffett is able to personally be as charitable as he is.

It is important to bring up Buffett because he is mostly an equities investor as JUST will be as well, while Jones is more of a macro investor which extends far beyond equities. It will be interesting to see how JUST develops and performs over the coming years in its returns to investors and society as a whole. And by the way, although I hold Buffett in high esteem, he is not without his own flagrant crony capitalistic exploits.

Jones and Buffett do agree that the government is a horrible redistributor of capital and it is best to leave it to private business through voluntary exchange rather than forced government takings. Buffett has said, “The free market’s the best mechanism ever devised to put resources to their most efficient and productive use. … The government isn’t particularly good at that. But the market isn’t so good at making sure that the wealth that’s produced is being distributed fairly or wisely.” On the same issue of government redistribution, Jones said during the interview, “THAT’S THE WORST OF ALL OUTCOMES BECAUSE THAT’S THE WORST WAY TO REDISTRIBUTE INCOME.” Through JUST and his other causes, Jones is looking to redistribute wealth organically, outside the inefficiencies and force of government.

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GivingTuesday at Institute for Justice doubles donors’ impact only for today

givingtuesday

Today, December 2, 2014, the Institute for Justice is participating in GivingTuesday, a global day of giving designed to celebrate philanthropy.

A generous IJ donor has offered to match dollar-for-dollar each donation given to IJ during this year’s GivingTuesday event. This means that every gift will go twice as far in the fight for everyday heroes like IJ clients Russ Caswell and the monks of St. Joseph Abbey.

IJ’s GivingTuesday matching grant challenge starts at 12:00 a.m. and ends at 11:59 p.m. tomorrow, December 2, 2014.

GivingTuesday at Institute for Justice doubles donors' impact only for today

givingtuesday

Today, December 2, 2014, the Institute for Justice is participating in GivingTuesday, a global day of giving designed to celebrate philanthropy.

A generous IJ donor has offered to match dollar-for-dollar each donation given to IJ during this year’s GivingTuesday event. This means that every gift will go twice as far in the fight for everyday heroes like IJ clients Russ Caswell and the monks of St. Joseph Abbey.

IJ’s GivingTuesday matching grant challenge starts at 12:00 a.m. and ends at 11:59 p.m. tomorrow, December 2, 2014.

Tony Robbins and Feeding America® Partner to Take on the Challenge of Hunger to Help Struggling Families

Best-selling author, entrepreneur and philanthropist Tony Robbins has again partnered with Feeding America, the nation’s largest domestic hunger-relief organization, to help provide 100 million meals* to families in need. Robbins invites the public to help match his personal gift of 50 million meals to Feeding America so, together, 100 million meals can be provided through Feeding America and its network of 200 local food banks.

All of the author’s profits of his recently published book, Money Master the Game, have been donated in advance by Robbins, which in conjunction with an additional personal donation, will provide 50 million meals to people in need this year. Food will be delivered by Feeding America’s network of food banks, the nation’s largest domestic hunger relief charity

“Feeding America is deeply grateful to Tony Robbins for his incredibly generous gift,” said Bob Aiken, Chief Executive Officer for Feeding America. “Tony’s newest commitment to our organization is not only an extension of his long time support for Feeding America, but also a tremendous expression of his 37-year passion for fighting hunger in our nation. Tony is taking his leadership in this cause to the next level by making this transformational gift now, while at the same time inspiring countless others to join his efforts in the 100 Million Meals Challenge – a campaign that will provide nourishment and hope to millions of Americans struggling with hunger.”

Tony Robbins faced food insecurity as a child and has supported the hunger cause for over three decades. In addition to several years’ worth of personal donations toward providing hunger relief across the country, Robbins made a gift of 1,000,000 meals to provide support to individuals affected by Superstorm Sandy.

“It’s a tragedy that in the United States, the richest country in the world, 49 million people, including 16 million children, may go to bed unsure if they will have a meal tomorrow. I know that those are more than startling statistics — those numbers are human beings suffering — and I came from one of those families,” said Tony Robbins. “I’ve now worked with Feeding America for more than five years and I can tell you that their dedicated nationwide network serves every day to alleviate not only hunger but fear and uncertainty as well. I hope you’ll join us in this mission; together let’s create a deeper, lasting impact.”

To learn more about the Tony Robbins and to get involved in the 100 Million Meals Challenge visit feedingamerica.org/100millionmeals

Feeding America is the nationwide network of 200 food banks that leads the fight against hunger in the United States. Together, we provide food to more than 46 million people through 60,000 food pantries and meal programs in communities across America. Feeding America also supports programs that improve food security among the people we serve; educates the public about the problem of hunger; and advocates for legislation that protects people from going hungry. Individuals, charities, businesses and government all have a role in ending hunger. Donate. Volunteer. Advocate. Educate.  Together we can solve hunger. Visit www.feedingamerica.org, find us on Facebook or follow us on Twitter.

Tony Robbins is a bestselling author, entrepreneur, and philanthropist. For more than 37 years, millions of people have enjoyed the warmth, humor, and the transformational power of Mr. Robbins’s business and personal development events. He is the nation’s #1 life and business strategist. He’s called upon to consult and coach with some of the world’s finest athletes, entertainers, Fortune 500 CEOs, and even presidents of nations.

Robbins is a founder of or partner in more than a dozen companies in industries as diverse as a 5-star Fijian island resort to custom 3D-printed prosthetic limbs. Through the Anthony Robbins Foundation and his matching funds, Tony feeds 4 million people per year in 56 countries. He has also initiated programs in more than 1,500 schools, 700 prisons, and 50,000 service organizations and shelters. He lives in Palm Beach, Florida.

*Every $1 donated to Feeding America helps provide 10 meals for families facing hunger. Tony Robbins is donating a minimum of 50 million meals* (monetary equivalent of $5,000,000) to Feeding America from December 2, 2014December 3, 2015.

robbins money book Feeding America Logo