5 Best Ethical Companies to Invest in According to Reddit

1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 259

Microsoft Corporation (NASDAQ:MSFT) is one of the best ethical companies to invest in according to Reddit because the company is the biggest holding of iShares MSCI USA ESG Select ETF (NYSEARCA: SUSA), an ETF that is quite popular among ethical investors on Reddit discussion boards. Microsoft Corporation (NASDAQ:MSFT) was also mentioned as a standalone investment option for ethical investors by several Redditors.

Microsoft’s ESG scores are excellent and the company ranks higher on the Just Capital’s rankings, which grade companies based on the “issues that matter most in defining just business behavior today.”

Microsoft Corporation (NASDAQ:MSFT) is also the most popular stock among 943 elite hedge funds tracked by Insider Monkey as of the end of the fourth quarter of 2022. TCI Fund Management of Chris Hohn has a $5.3 billion stake in the company.

Polen Global Growth Strategy made the following comment about Microsoft Corporation (NASDAQ:MSFT) in its Q1 2023 investor letter:

“Microsoft Corporation (NASDAQ:MSFT)’s fundamentals have largely stayed intact despite the headwinds many technology companies are facing due to the macroeconomic environment. While growth has decelerated below our longer-term target (we expect low-double-digit revenue growth over the next 3-5 years), we believe the deceleration should prove to be ephemeral. Azure and Office Commercial remain bright spots, while Windows OEM has been and will continue to be a drag over the next few quarters. With respect to Azure, even at a decelerated rate, the business continues to grow well. After eight consecutive quarters of Azure’s top line growth being in the mid-to-high-40s range, over the last two quarters, growth has been 42% and 38%, respectively. Microsoft is a scaled business with multiple and interlocking competitive advantages, and we believe the company will compound at high rates for a long period of time.”

You can also take a peek at 10 Most Profitable Small Businesses in 2023 and 10 Best April Dividend Stocks To Buy.