What are basic industries

CFA Level III Equities
#1

Hi all,

it is said that socially responsible investing tends to shun basic industries and energy companies. But in both Schweser and CFA I was not able to find a definition of basic industries and the internet is somewhat ambigous.

It is safe to say that “basic industries are traditional heavy industries like steel, chemistry, labor-intensed - they will pollute the environment”

Thanks a lot!

#2

according to this link: https://www.answers.com/Q/What_are_basic_and_non_basic_industries

basic industry is an industry whose raw material is from nature itself and not from other industries.

so this would include mining, agriculture,animal farming, fishing, plantations, forestry.

but after looking at nasdaq’s list of basic industries companies, this definition fits most but not all.

#3

Thanks!