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Mis­sion-cor­re­lated investing

TagLast edit: Mar 18, 2022, 11:21 AM by jh

Mission-correlated investing is any investment strategy that produces more money in worlds where money is relatively more valuable. That is, investments with returns that are correlated with the relative cost-effectiveness of future giving opportunities.

Mission-correlated investing increases the expected amount of good done by someone who is ‘investing to give’. This is because the contribution of an altruistic investor to the total good can be thought of as the amount of money they donate multiplied by the impact per dollar of the opportunities they fund. All else equal, increasing the correlation between the amount of money and the impact per future dollar increases the investor’s expected contribution.

Some of these strategies are ‘mission hedging’, though strictly speaking these strategies will only hedge (reduce the variance of outcomes) in certain situations. It is also possible that a mission-correlated investing increases the variance of future outcomes.

There are many specific varieties including ‘investing in evil to do good’, investing in companies developing new risky technologies like AI, and investing in a way that has low or negative correlation with other altruists. The average investor’s aversion to market risk can be viewed as coming from the mission-correlation between the market and their mission to consume more.

A gen­er­al­ized strat­egy of ‘mis­sion hedg­ing’: in­vest­ing in ‘evil’ to do more good

Hauke HillebrandtFeb 18, 2018, 5:41 PM
45 points
34 comments18 min readEA link

Mis­sion Hedgers Want to Hedge Quan­tity, Not Price

MichaelDickensAug 18, 2021, 8:32 PM
28 points
6 comments5 min readEA link

Event-driven mis­sion cor­re­lated in­vest­ing and the 2020 US election

jhJun 14, 2021, 3:06 PM
48 points
11 comments4 min readEA link

Seek­ing feed­back on new EA-al­igned eco­nomics paper

jhOct 21, 2021, 9:19 PM
35 points
13 comments1 min readEA link

Maybe An­tivirals aren’t a Use­ful Pri­or­ity for Pan­demics?

DavidmanheimJun 20, 2021, 10:04 AM
40 points
22 comments4 min readEA link

The Risk of Con­cen­trat­ing Wealth in a Sin­gle Asset

MichaelDickensApr 29, 2022, 5:58 PM
97 points
20 comments11 min readEA link

A Pre­limi­nary Model of Mis­sion-Cor­re­lated Investing

MichaelDickensApr 4, 2022, 6:50 PM
34 points
2 comments22 min readEA link

Im­por­tant, ac­tion­able re­search ques­tions for the most im­por­tant century

Holden KarnofskyFeb 24, 2022, 4:34 PM
298 points
13 comments19 min readEA link

When to di­ver­sify? Break­ing down mis­sion-cor­re­lated investing

jhNov 29, 2022, 11:18 AM
33 points
2 comments8 min readEA link

Mis­sion-cor­re­lated in­vest­ing: Ex­am­ples of mis­sion hedg­ing and ‘lev­er­ag­ing’

jhMar 11, 2022, 9:33 AM
25 points
1 comment7 min readEA link

Mis­sion cor­re­la­tion, more than just hedging

jhMar 11, 2022, 9:32 AM
29 points
5 comments3 min readEA link

Philan­thropists Prob­a­bly Shouldn’t Mis­sion-Hedge AI Progress

MichaelDickensAug 23, 2022, 11:03 PM
28 points
9 comments36 min readEA link

Toward Im­pact Markets

Dawn DrescherMar 15, 2022, 10:08 PM
52 points
11 comments57 min readEA link
(impactmarkets.substack.com)

X-Risk, An­throp­ics, & Peter Thiel’s In­vest­ment Thesis

Jackson WagnerOct 26, 2021, 6:38 PM
50 points
1 comment19 min readEA link

The al­tru­is­tic case for Bitcoin

snailraceSep 3, 2022, 8:49 AM
3 points
6 comments18 min readEA link

[Question] In­vest­ing in cli­mate miti­ga­tion in Africa

drbrakeJan 30, 2023, 4:21 PM
3 points
2 comments1 min readEA link

Find­ing so­cially re­spon­si­ble in­vest­ment op­por­tu­ni­ties (look­ing for feed­back)

hyunjunJun 14, 2022, 10:00 AM
1 point
0 comments1 min readEA link

Cli­mate-con­tin­gent Fi­nance, and A Gen­er­al­ized Mechanism for X-Risk Re­duc­tion Financing

johnjnaySep 26, 2022, 1:23 PM
6 points
1 comment25 min readEA link