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September 2025

In my prior article, I wrote specifically about our responsibilities to invest in ourselves, and our futures. Recently there has been waves of issues regarding companies that have either chosen to disrespect or have failed to acknowledge the existence of the African American buying power. This article encourages investing in assets/companies that matter personally and avoiding companies that demonstrate a lack of respect. Your spending choices signal approval for a company’s actions; As my dad would say- “You vote with your dollars!”  It is just as important to divest or avoid investing with companies who either ignore, take us for granted or simply disregard our needs.

The terms “investing” and “divesting” are often heard in financial, business, and policy discussions, but their differences extend far beyond simple definitions. For the African American community, the implications of investing and divesting carry profound historical, economic, and social weight. Understanding the contrast between these concepts is crucial for grasping their potential to shape, uplift, or challenge communities.

Investing refers to the allocation of resources—whether money, time, energy, or expertise—into an asset, project, or community with the expectation of generating a positive return, growth, or impact over time. In a financial sense, investing means purchasing assets such as stocks, bonds, real estate, or starting a business, with the hope that their value will increase.

However, investment can also mean pouring resources into communities, education, and infrastructure. Social investing, for example, seeks not only a financial return but also a positive social or environmental outcome.

Divesting is the act of withdrawing resources, typically in the form of money or assets, from an investment, organization, or industry. While divestment is often used as a financial “TOOL”—such as selling shares in a company—it also functions as a strategy for enacting social or political change. For instance, divestment campaigns have called for the withdrawal of funds from industries or entities that are viewed as harmful, unjust, or misaligned with certain values, such as fossil fuels, tobacco, or private prisons. Several decades ago, you may remember the push to divest from South Africa due to their position on racial injustice.

At their core, investing and divesting are opposite actions. Investing is about building, supporting, and nurturing; divesting is about withdrawing, distancing, and, sometimes, protest. The key differences can be summarized as follows:

• Direction of Resources: Investing directs capital and resources into a target, aiming for growth and improvement; divesting pulls resources out, aiming to reduce support or send a message.
• Intent: Investors look to foster opportunity and benefit, whether for profit or social good. Divestors often aim to express objection, align with values, or avoid complicity.
• Impact: Investing can create jobs, improve infrastructure, and build wealth. Divesting may influence change, reduce financial support for certain activities, or prompt policy adjustments.
• Time Horizon: Investments are typically long-term in nature, while divestments can be more immediate actions.

For the African American community, the history of investing and divesting is intimately tied to broader struggles for economic empowerment and social justice. Historically, African Americans were systematically excluded from access to capital, homeownership, and business investment due to discriminatory policies such as redlining, segregation, and unequal access to credit.

Conversely, divestment has been a tool for protest and social change—most notably in the campaign to divest from apartheid South Africa, which saw significant support from African American activists and institutions.

Investing in the African American community means more than individual stock market participation. It encapsulates targeted efforts to build Black-owned businesses, support access to quality education, increase homeownership, fund local initiatives, and bring venture capital to underrepresented entrepreneurs.

The benefits are multi-layered:

• Wealth Building: Investment provides opportunities for generational wealth creation, which has historically lagged in African American households due to systemic barriers.
• Community Development: Capital investment can revitalize neighborhoods, improve schools, develop infrastructure, and promote safer, healthier communities.
• Empowerment: Investing in Black-owned banks, institutions, and businesses fosters self-sufficiency, entrepreneurship, and local leadership.
• Representation: When capital flows into diverse hands, it ensures that solutions and innovations reflect the needs and voices of the entire community.

Divestment has also played a powerful role in the African American experience. Institutions, including churches, universities, and pension funds have used divestment to protest and reject investments in practices or industries that perpetuate inequality, violence, or environmental harm.

Some examples include:

• Withdrawing funds from companies involved in private prisons, which disproportionately impact African American populations.
• Divesting from polluting industries that disproportionately affect Black neighborhoods.
• Boycotting companies with histories of discriminatory practices.

Divestment, in this context, is not merely a financial act but a declaration of values—a refusal to support systems that harm the community.

Recently, there has been a surge in awareness and activism surrounding where resources are invested or withheld. The “Buy Black” movement encourages investment in Black-owned businesses as a form of economic solidarity. Simultaneously, campaigns to divest from policing, prisons, and harmful industries echo a call for funds to be reallocated toward education, healthcare, and public safety.

Financial literacy initiatives in the African American community (like www.blackmeninamerica.com) are working to demystify investing, making it accessible and empowering for all generations. At the same time, divestment strategies are used to push for corporate and government accountability—holding institutions to higher standards of equity and ethics.

The major difference between investing and divesting lies in their purpose: one seeks to build, the other to withdraw. For the African American community, both actions carry significance. Investing means planting seeds for prosperity, equity, and empowerment. Divesting means taking a stand against injustice and reallocating support for more ethical and inclusive alternatives.

Both practices, when strategically employed, can help shape a future where resources are not only tools for growth but also instruments of justice and healing. Understanding their power and potential enables the African American community—and society at large—to make choices that honor history, foster opportunity, and demand accountability.

It is now up to you, be steadfast in selecting companies or funds whose missions & actions align with your core values. You have heard this statement at least once- “Put your money where your mouth is” Vote wisely!

As a respected State Farm agent, mentor, and community leader, Stan Harrison, CLU, CHfC, CASL, MDRT (386) 427-5277can help you with money management, insurance, generational wealth, and real-world financial planning. From protecting what matters to building what’s next — Stan’s got you covered.  Click here to contact Stan and have him assist you with your financial needs.