MBA students at Bainbridge Graduate Institute planted the seeds for Rooted Investing in the fall of 2011.  We shared a common goal of “Changing Business for Good,” and we each had very different experiences in our business careers and our personal lives. We shared our stories and learned from each other. A vision for a new category of investing began to emerge – community-based, relationship-based investing that we call Rooted Investing.

 

 

Diane Freaney

Founder and Creative Director

I understood what happened in 2008 and it scared me.  I lost 42% on my investments and, since I was living off the income from my investments, this was a very big deal.  I spent my whole career working in accounting and finance and investing.  What had happened?

I began investing when I was 10 years old. My father took me to the South Weymouth Savings Bank to open a passbook saving account.

I asked my father where my savings went. He told me that the bank lent my money to our neighbors so they could buy homes. When I was ready to buy a home, I would sit down with the bank manager and he would go over my expenses and my savings and tell me the bank would lend me, which would determine how much house I could afford.

After college, I joined the audit staff of a “Big 8” accounting firm in New York City.  One of my first assignments was counting stock and bond certificates in Wall Street vaults. I knew most public companies by name because I counted their certificates.

I worked for several major public companies where I learned to play the earnings per share (EPS) game, practicing quarter-to-quarter accounting, always spinning exactly the right story for SEC reports so we all got the bonuses that we were sure we deserved.

At the Corporate Financial Management Program at the Harvard Business School, I learned OPM from Sam Hayes, Investment Banking professor.  OPM = Other People’s Money – you never risk your own money on Wall Street.

I learned “tax-sheltered investing,” which was like a drug – main lining EPS, all perfectly legal, and requiring just the perfect balance between accounting rules and tax laws. My final year in Corporate America, my tax-sheltered investing deals made 20% of the profit of the company doing something that had nothing to do with the products the company sold and no one but me in my company understand. By 2008, this type of investing had become standard for many major public companies.

I managed the endowment investment process for foundations.  Everyone was a “fiduciary,” protecting the value of the endowment for future generations.

Amy Domini invented socially responsible investing, first by listening to her client’s values and excluding certain names and started Social Investment Funds.  Amy put the focus

Email Diane


Murthy Srinivas

Founder and Director of Innovation

Murthy brings over 30+ years of experience in software development, technical consulting, and start-ups to the Rooted Investing.

He is often the go-to person for overcoming challenges and is affectionally known as “the hammer” to the team.

Murthy’s focus and passion is integrating a collaborative consumption micro-economies into local communities.

Email Murthy


 Our Philosophy is simple: treat every investment as if it is My Own Money (MOM)

The old paradigm of Wall Street Investments, recklessly investing Other People’s Money (OPM) is at the root of an economic disconnect.

Eliminating the divide between Wall Street and Main Street by investing in communities and individuals by individuals will bring renewed economic vitality. Returning the power of economic self-determination to people.

My Own Money (MOM)

[accordions] [accordion title=”Simple” visible=”yes”]

  • Simple Interest
  • Simple documents

[/accordion][accordion title=”Do-It-Yourself DIY”]

  • Fund the world that you want to live in
  • You make your own decisions

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[accordion title=”People” visible=”yes”]

  • Relationship based
  • Intuition
  • Caring and love

[/accordion]

[accordion title=”Local” visible=”yes”]

  • Community and culture based
  • Neighborhood, town/city, county, state, country
  • Local operations of international companies

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Other People’s Money (OPM)

[accordions] [accordion title=”Complex” visible=”yes”]

  • SEC filings, 10Q, 10K, 8K, S8, CMO, CDO,
  • Hedge Funds, Junk Bonds, Leverage, Arbitrage
  • Proxy Statements, Earnings Calls
  • Complex legal documents – court system interprets

[/accordion][accordion title=”Experts”]

  • Attorneys, CPAs, CFAs, VPs, CFREs, CEOs, EVPs,
  • Must rely on “experts” to interpret complex documents and complex data
  • “Experts” decide for you

[/accordion]

[accordion title=”Numbers” visible=”yes”]

  • ROI, ROA, PEG Ratio, Alpha, Beta, Black-Scholes
  • GAAP, EBIT, EBT, EPS, Free Cash Flow, Asset Turnover
  • Morningstar Style Box, Asset Allocation, Diversification
  • Big Data

[/accordion]

[accordion title=”Global” visible=”yes”]

  • Global decisions – local needs ignored
  • Hierarchal structures
  • Shareholder returns

[/accordion]

[/accordions]

 

My Own Money (MOM)

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