Capitalism Inc 2016_half

The Capitalism, Inc. Stock Certificate

Capitalism Inc 2016_half

At Index Funds Advisors, we are sometimes asked if there is any company whose stock we would recommend buying. Our tongue-in-cheek answer is shown below:

Capitalism Inc.
(See the full Capitalism Inc. certificate here [PDF] )

The brainchild of IFA’s founder and president, Mark Hebner, Capitalism Inc. neatly summarizes the universe of investable companies. As the numbers indicate, it is a very large universe, indeed, with amounts that are measured in trillions of dollars (in case you lost count of the zeroes).

The gentleman pictured on the certificate is Adam Smith, the Scottish moral philosopher and pioneer of the field of political economy who is best known for An Inquiry into the Nature and Causes of the Wealth of Nations. IFA is honored to have a copy of the fifth edition of this landmark book in our collection of antique books on finance (please see the link in the prior sentence).

While some people have asked us where on the certificate is Adam Smith’s “invisible hand” that guides market participants to fair prices, we tell them if they stare at it long enough and perhaps squint a little bit, a 3-D hand will pop out. Seriously, we did pay homage to this metaphor by commissioning the painting below that shows the invisible hand at work on Wall Street. Smith asserted that by allowing buyers and sellers to set prices, a free market economy would ensure the allocation of resources in the most efficient manner, thus ensuring the prosperity of nations that embrace free-market capitalism.

Market Forces

While many companies have come and gone over the years, capitalism endures and continues to provide a good return on investment. For that reason, we have created the Capitalism, Inc. certificate. If you are ready to begin your investment in Capitalism, Inc., please take the IFA Risk Capacity Survey.