The Black community has long been underrepresented in the world of business and finance. However, that is beginning to change. In recent years, there has been an increase in the number of Black-owned businesses and Black-managed investment funds.
This is good news for both the Black community and the economy as a whole as Black-owned businesses are typically more innovative and efficient than their white-owned counterparts. They are also more likely to reinvest their profits in the local community, which can help to reduce poverty and improve economic conditions.
If you are looking for a new investment opportunity, Black-owned stocks are a great option to consider. Here are some of the reasons why you should consider investing in Black-owned stocks.
1. Introduction
There are many reasons why you should consider investing in black-owned stocks. For one, black-owned businesses are often undervalued, which means there is potential for high returns. Additionally, investing in black-owned businesses can help to support the black community and promote economic development.
Here are a few things to keep in mind if you're considering investing in black-owned stocks:
- Black-owned businesses are often undervalued, which means there is potential for high returns.
- Investing in black-owned businesses can help to support the black community and promote economic development.
- When considering an investment, be sure to research the company and the management team to ensure they are a good fit for your investment goals.
2. Why Is It Important To Invest In Black-Owned Stocks?
Black-owned businesses have historically been underfunded and underserved by the mainstream financial system. As a result, they have often been forced to rely on alternative sources of funding, such as private equity or venture capital. However, these sources of funding are often difficult to obtain and come with high-interest rates.
By investing in black-owned stocks, you can help support Black-owned businesses and entrepreneurs. Additionally, your investment can help to create more opportunities for Black Americans to build wealth and help close the racial wealth gap.
If you’re interested in investing in black-owned stocks, here are a few companies to look into:
Abington Bank (ABBK) – Abington Bank is a black-owned bank based in Massachusetts. The bank has been serving the black community since 1846.
OneUnited Bank (OUNZ) – OneUnited Bank is the largest black-owned bank in the United States. The bank was founded in 1968 to promote economic development in urban communities.
Industrias Bachoco (IBA) – Industrias Bachoco is a black-owned Mexican company that is one of the largest poultry producers in the world.
RLJ Lodging Trust (RLJ) - RLJ Lodging Trust is a real estate investment trust with a portfolio consisting of 103 hotels across 23 states and the District of Columbia.
Urban One (UONE and UONEK) - Originally founded by Cathy Hughes as Almic Broadcasting in 1979, Radio One started out with just a single station: WOL-AM in Washington, D.C. In 1987, Radio One added an FM station to its roster: WMMJ, also in Washington, D.C. Twelve years later, Radio One sold its first shares of common stock, making Hughes the first African American woman to head a publicly traded company.
Ping Identity Holding (PING) - Founded by Andre Durand in 2002, Ping Identity Holding specializes in a wide variety of digital and online identity protection services through its trademarked Ping Intelligent Identity platform, including multifactor authentication, intelligent access controls, and identity data management.
Global Blood Therapeutics (GBT) - According to the U.S. Centers for Disease Control and Prevention (CDC), approximately 100,000 Americans are living with sickle cell disease (SCD); one out of every 365 Black children is born with this genetic disorder. Biopharmaceutical company Global Blood Therapeutics is leading the charge against SCD by developing several treatments and therapies, in addition to raising awareness and advocating for increased access to care.
Carver Bancorp (CARV) - Carver Bancorp is the holding company for Carver Federal Savings Bank, a federally chartered savings bank. Founded by a group of community leaders and small business owners in 1948, Carver offers consumer and business banking products and services to traditionally underserved African American communities.
Broadway Financial Corp. (BYFC) - Much like Carver Bancorp, Broadway Financial Corp. is the holding company for City First Bank, another CDFI. Broadway Federal Bank was founded in 1947 as the Broadway Federal Savings and Loan Association by a group of Los Angeles civic leaders, including real estate broker H.A. Howard and dentist Dr. H. Claude Hudson.
Axsome Therapeutics (AXSM) - Founded in 2012 by Dr. Herriot Tabuteau, Axsome focuses on the development of novel therapies for managing central nervous system (CNS) disorders, for which treatment options are limited. The conditions that Axsome Therapeutics’ products are designed to treat include migraines, narcolepsy, fibromyalgia, major depressive disorder (MDD), and Alzheimer’s disease-related agitation, in addition to smoking cessation treatment.
American Shared Hospital Services (AMS) - The company offers several different financing solutions so that medical institutions can afford the state-of-the-art medical technology that ordinarily might be out of their reach.
3. What Are The Benefits Of Doing So?
There are many benefits to investing in Black-owned businesses. For one, Black-owned businesses tend to be located in communities that are underserved by mainstream businesses. By investing, you can help create jobs and stimulate economic growth in these areas. Additionally, Black-owned businesses are often overlooked by large investors, so your investment can help to level the playing field.
In addition, Black-owned businesses are not only owned by members of the Black community, but they also employ members of the Black community. So not only are you helping a Black-Owned business grow and expand, you're also contributing to the employment of Black Americans.
4. How Can You Get Started?
There are many ways to get started with investing in a Black-owned business. One way is to research companies that you are interested in and then contact the company to inquire about investing. Another way is to attend conferences or events that focus on Black-owned businesses. This is a great way to network and learn more about opportunities to invest. You can also reach out to Black-owned business commerce and trade organizations to learn more about investing.
The Bottom Line
When you invest in a Black-owned business, you are investing in the future of the Black community. Black people are most innovative people on the planet and it is imperative that we reap the benefits of our labor.
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