Filed Under:
Tickers in this Article: VZ, T, DT, S, SPY, MS, GS, USB, UBS, WFC, VWO, EFA
Donations from sovereign nations and multinational corporations have been pouring into Haiti since the quakes first strike last week. The display of altruism is a welcome respite from the forces of capitalism, which place a large emphasis on profits for the benefit of shareholders. Investors who value the charitable contributions of the companies or regions they invest in will find the following information useful.

IN PICTURES: 20 Tools For Building Up Your Portfolio

Telecommunications
Wireless communications providers including Verizon (NYSE:VZ), AT&T (NYSE:T), Sprint Nextel (NYSE:S) and T-Mobile, the private subsidiary of Germany's Deutsche Telekom (NYSE:DT) have all contributed to the aid effort by allowing cell phone users to send 100% of monetary pledges made via text message to their choice of organizations including the Yele Haiti Foundation and the William J. Clinton Foundation.

Over the past 12 months, Sprint Nextel is the only stock among the group mentioned to have outperformed the 40% rise of SPDR S&P 500 ETF (NYSE:SPY). Sprint continues to trade below $4 per share and investors should take notice of the insider stock sales as a possible sign of weakness or as an investment opportunity for the long-term investor.

Bailout Beneficiaries
Large U.S. banking institutions including Morgan Stanley (NYSE:MS) and Goldman Sachs (NYSE:GS) have also pledged to donate funds reaching as high as $1 million in some cases towards relief efforts in Haiti. These banking institutions were among the group of financial institutions that recently testified on Capitol Hill in Washington D.C. in front of the Financial Crisis Inquiry Commission.

Other banks that have pledged financial support to Haiti include Bank of America (NYSE:BAC), Wells Fargo (NYSE:WFC), U.S. Bancorp (NYSE:USB) and UBS (NYSE:UBS).

International Aid
The United Nations Security Council, which is comprised of permanent members including China, France, the Russian Federation, the United Kingdom and the United States, has also pledged to provide additional troops and millions of dollars in aid to Haiti. Given the diverse nature of the International Peace keeping organization, an investor can consider exchange-traded funds (ETFs) focused on markets outside of the U.S. as investment options.

The iShares MSCI EAFE Index (NYSE:EFA), which track stocks from Europe, Australasia and the Far East is one option to consider. The Vanguard Emerging Markets ETF (NYSE:VWO) is another option given its greater emphasis on stocks from China and Brazil while the EFA allocates more funds towards stocks from the United Kingdom and Japan.

The Bottom Line
Lending a helping hand can be contagious and it can also have the double benefit of helping both the recipients of aid and the donors. Although capitalism will continue to be the driving force behind the quest for profits, investors can be assured that part of those dollars often do make their way into the hands of those in need.

Use the Investopedia Stock Simulator to trade the stocks mentioned in this stock analysis, risk free!

comments powered by Disqus

Trading Center