The Color of Money: Maharishi's Rationale and Recommendations for Green Investing

Abstract

Maharishi Mahesh Yogi (1963) presented a theory of earnings that, when applied to investing, explains why socially responsible investors would be averse to blood out of self-interest, not merely as a reflection of values-based investing. We motivate this theory about the origination of money using a weak analogy to renewable energy certificates and distinguish it from the so-called karmic theory of investing (Damodaran, 2012). We consider Maharishi’s presentation of the theory in detail and discuss its implications for investors: investing in companies that are socially responsible over their supply chain, acquiring renewable energy certificates and carbon allowances, engaging in charity and practicing the Transcendental Meditation technique.