RL068 - Retirement Lifestyle: Impact Investing BAM with Buddy Rathmell
Today on the Retirement Lifestyle Show, Roshan Loungani, Erik Olson and Adrian Nicholson talk to Buddy Rathmell who is a coach and trainer for the Business as Mission (BAM) movement. Currently, he is in the process of launching BAM School with the goal of developing impactful disciple-leaders in business. He is also the host of the BAM School Podcast. Buddy shares the stories of successful BAM businesses and the opportunities, risks, and potential returns of investing in BAM companies.
[03:55] Introducing Buddy Rathmell [07:03] Business as Mission Movement [10:28] How Buddy Got Involved with BAM [13:01] Impact Investing and its Four P’s [18:10] BAM Investors and Involved Groups [21:10] Businesses as Tools for Positive Change [25:27] Unique Investment Risks to BAM Investing [30:23] Where to find BAM Investment Opportunities [33:19] About BAM School [37:18] Returns from BAM Investing [42:11] BAM Opportunities for Entrepreneurs and Business Builders [48:05] Find Purpose by Getting Involved [50:09] What are Other Ways to Make an Impact? [57:04] Stop Slavery: Fighting against Human Trafficking
For the full show notes keep scrolling down!
Roshan Loungani can be reached at roshan.loungani@aretewealth.com or at 202-536-4468.
Erik Olson can be reached at erik.olson@aretewealth.com or 815-940-4652.
Adrian Nicholson can be reached at adrian.nicholson@aretewealth.com or at 703-915-8905.
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Full Show Notes:
Impact Investing and the Four P’s
Impact investing is an investment strategy that’s driven by values. The investor’s goal is to have multiple bottom lines which may or may not be for profit. For example, one of the investor’s desired outcomes can be to help alleviate poverty. In most cases, impact investors offer private companies a debt or equity offering.
Business as Mission (BAM) emphasizes the importance of people, planet, profit, and purpose. Businesses with a healthy work culture and a clear purpose are significantly more profitable than businesses who don’t possess these qualities. Contrary to popular belief, impact investing does not have to be done overseas. A lot of impact investors are willing to receive lower returns because of the businesses’ positive effects on the world. They’re more hands-on and actively want to help aside from just providing capital.
Unique Investment Risks to BAM Investing
Business rules and regulations are different per country. It may be easier to conduct business in some countries but harder in others. Investors and entrepreneurs must familiarize themselves with a specific area’s laws to avoid problems down the line. Another thing to consider is the foreign country’s culture. Understanding cultural differences can help you work harmoniously with the locals. When you’re overseas, there’s also a risk of being deported. The COVID-19 pandemic has tightened borders around the world, with some entrepreneurs getting kicked out of the country and being unable to return.
Returns from BAM Investing
Typically, BAM investors receive a 10% return on their principal. BAM businesses that provide high returns are rare. The market is relatively young, with a lot of businesses operating in different countries which have its own unique risks. Debt offerings are more common than equity offerings. Impact investors choose to invest despite the risks and lower returns because of the businesses’ contributions to society. If it’s a small business, investors can expect their principal back and a small return. In bigger businesses with proven concepts, investors can expect greater returns.
What are Other Ways to Make an Impact?
You don’t need to be in the BAM world to make a difference. If you’re willing to travel, you can offer your services or expertise to businesses that need them the most. Or you can even reach out to your network to offer mentorship to friends and acquaintances. It may feel awkward to put yourself out there but it’s the only way to get things done. Instead of waiting for opportunities to come find you, you can be proactive in helping others.
All opinions expressed by podcast hosts and guests are solely their own. While based on information that they believe is reliable, neither Arete Wealth nor its affiliates warrant its completeness or accuracy, nor do their opinions reflect the opinion of Arete Wealth. This podcast is for general informational purposes only, and should not be regarded as specific advice or recommendations for any individual. Before making any decisions, consult a professional.