Suspended Social Democrats TD Eoin Hayes has attracted heat after it emerged he sold shares in controversial software company Palantir for €199,000, one month after being elected to Dublin City Council.
Hayes, who worked for Palantir from 2015 to 2017, initially said he sold the shares before he entered politics. That wasn’t true, but it’s hardly the biggest political porkie one will hear, given he did offload the shares just a month after becoming a councillor.
To his critics, the bigger crime may be the very idea of profiting from Palantir, which supplies artificial intelligence tools to Israel’s military. Those who see all this as a storm in a teacup might dwell on the unfortunate timing of Hayes’s stock sale – Palantir shares have almost tripled over the last five months.
Both takes may be missing the point.
Firstly, while Palantir is controversial, it is not universally panned; leading ESG (environmental, social and governance) rating firm Sustainalytics gives it an ESG score of 22, which is a medium risk rating relative to industry peers.
Even if one sees Palantir as unethical, that doesn’t mean investors should sell their shares – research indicates engagement is more effective than divestment.
Ethics aside, the fact shares have recently trebled doesn’t mean Hayes shouldn’t have sold.
As any financial adviser will note, it’s never a good idea to be too invested in one stock. Diversification isn’t just prudent; it protects against unpredictable markets and the reputational risks tied to any one firm.
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