Virtue signaling is when someone publicly expresses their beliefs or opinions to show their good character or moral stance on a particular issue. It’s quite common for people to want to share their beliefs, especially on issues they deeply care about.
For instance, I am a strong advocate for supporting the approximately 15% of the population born with a disability. This belief is not only reflected in my writings but also in my charitable contributions.
The issue arises when virtue signaling becomes excessive, leading others to feel inferior morally. Sometimes, individuals may engage in virtue signaling to boost their self-image, while their actions may not align with their proclaimed beliefs.
Let’s first look at some everyday examples of virtue signaling that display inconsistency between words and actions:
- Politicians advocating public schools but enrolling their children in private institutions.
- University leaders promoting diversity and inclusion, yet maintaining small class sizes to keep exclusivity, and manipulating admission systems.
- Vegetarians who criticize meat consumption but wear leather products.
- Building inspectors who condemn unauthorized home renovations but accept bribes from developers.
- Wealthy individuals complaining about low taxes but not contributing more voluntarily.
- Advocates for free online content who aren’t willing to work without pay.
- Personal finance experts emphasizing the importance of accessible financial education, yet charging high fees for their courses.
- Proponents of housing development who oppose new constructions in their own neighborhoods.
- Supporters of immigration who react negatively when immigrants arrive in their city.
- Advocates for police defunding who rely on police services in emergencies.
- Companies hiring diverse employees but laying them off first during downturns.
These instances show that virtue signaling is widespread, but it becomes problematic when it’s not backed by consistent actions. If your actions align with your beliefs, that’s commendable. If not, it’s seen as hypocrisy.
A Noteworthy Example of Consistent Virtue Signaling
Consider the case of parents who lost their daughter in a carjacking and sought clemency for her murderer. Their daughter was a firm believer in restorative justice over incarceration. Here, the parents’ actions align with their daughter’s beliefs, even though they involve a great personal sacrifice. This scenario raises a critical question: what if the offender repeats his crime?
Investor Virtue Signaling In Capitalist America
Investor virtue signaling occurs when someone criticizes certain investments on ethical or moral grounds. It’s especially intriguing in a capitalist country like America, where freedom of speech and investment is celebrated.
Yet, as investors, our goal is to earn returns on our investments. It seems contradictory when investors criticize certain investment strategies while engaging in similar ones themselves. For example, a real estate investor criticizing other real estate investors, or stock investors criticizing peers, seems inconsistent.
Investing, at its core, revolves around supply and demand. Successful investing often involves identifying and holding scarce assets. This includes real estate in prime locations, companies that rarely issue new shares, unique artworks, or cryptocurrencies with a fixed supply.
An Example of Investor Virtue Signaling
I’ve invested in private real estate funds like Fundrise since 2016 to diversify my holdings and earn passive income. However, some view such investments as unethical, likening them to institutions like Blackstone that are accused of monopolizing American real estate.
Everyone has the right to their opinions and investment choices, just like Fundrise and other investors have the right to seek profitable opportunities. For example, a commenter on my podcast expressed disapproval of such investments on ethical grounds, despite being a real estate investor himself.
This contradiction is a form of investor virtue signaling – criticizing a practice in which one is personally engaged. It reflects a lack of understanding of the nature of investing and the principles of capitalism.
Your Right to Think and Invest As You Please
In America, we cherish the freedom to express our views and make our own investment choices. This freedom extends to sellers who can choose whom to sell to, and companies like Fundrise that seek profitable real estate opportunities.
I was curious about the background of the commenter who criticized Fundrise, expecting him to be involved in non-profit or government work, and not invested in real estate. Surprisingly, he revealed he was a pharmaceutical consultant and a real estate investor, which seemed inconsistent with his earlier virtue signaling.
As a pharma consultant, his role is likely focused on maximizing profits for pharmaceutical companies. This industry is often criticized for its high drug prices, which can impact access to essential medications. Yet, he criticized institutional real estate investors for their investment strategies.
Conclusion: Align Your Actions With Your Beliefs
It’s fine to have personal beliefs and investment strategies. However, publicly criticizing practices that you yourself engage in is inconsistent and undermines the credibility of your stance.
In investing, as in life, it’s important to align your actions with your beliefs. This alignment is key to being true to yourself and maintaining integrity in your personal and professional life.
As for me, I’ll continue to share my opinions, welcome dissenting views, and strive for consistency between my beliefs and actions. Whether it’s investing in real estate through platforms
like Fundrise or exploring new ventures like their Innovation Fund, I believe in diversifying my investments while staying true to my principles.
