Think Like an Owner: How Corporate Taxes, Politics, and Values Shape Smart Investing

If you’ve been following the Invested podcast or reading my work, you know I’m a big believer in one core principle: invest like an owner, not a trader. In this post, I want to unpack how global corporate tax shifts, political policies, and even personal values affect your investments. And more importantly, I want to show you how thinking like a long-term business owner changes everything.

Why Are U.S. Companies Moving Overseas?

For years, the U.S. corporate tax rate hovered around 35%, plus state taxes—often putting the total tax burden over 40%. Compare that to countries like Ireland, where corporate taxes are closer to 12.5%, and you can see why companies started moving their operations overseas.

Here are some real examples:

• Burger King moved to Canada.

• Medtronic and AbbVie shifted to Ireland.

• Chiquita Brands and Mylan relocated to the UK and Netherlands.

In 2017, the Trump administration dropped the U.S. federal corporate tax rate to 21%, and the exodus of companies virtually stopped. That single policy change shows how profoundly tax law can affect corporate decisions—and, by extension, the companies you may be investing in.

What It Means to Think Like an Owner

Rule #1 investing isn't about chasing tickers or playing the market. It's about understanding that when you buy a stock, you're buying a piece of a real business. You're becoming an owner.

That mindset shift changes how you evaluate companies:

• Would I be proud to own this business?

• Do I trust its leadership?

• Are its decisions aligned with long-term value creation?

When corporations shift headquarters or change strategies to avoid taxes, you need to assess how those moves affect the company’s moat, margin, and mission.

The ESG and DEI Debate: Values vs. Performance

In recent years, environmental, social, and governance (ESG) investing has gained massive attention. Many mutual funds and ETFs now score companies based on their commitment to values like diversity and sustainability.

But here’s the issue:

• ESG and DEI (diversity, equity, inclusion) initiatives are not universally accepted.

• Some companies, like Tractor Supply, have rolled back DEI programs after customer and investor backlash.

• Shareholders increasingly challenge management over value-driven decisions.

If you're not aware of how your investments are managed in ESG-indexed funds, you might unknowingly be part of a strategy that doesn't reflect your values or financial goals.

This is why knowing what you own is so critical. Many large funds are making voting decisions on your behalf that can affect company direction—and your returns.

Passive Investing Can Have Unintended Consequences

ETFs and mutual funds are incredibly popular, especially in retirement plans. But there's a hidden danger: when you invest passively, you're giving away your shareholder vote to a handful of powerful fund managers.

That means people you’ve never met are deciding:

• Which companies get your money

• How to vote on corporate policies

• What values your money supports

And in some cases, these managers (like BlackRock or Vanguard) control such massive percentages of public companies that their influence rivals that of governments.

Long-Term Shareholders Create Stronger Companies

One of the best things you can do for both your portfolio and society is to become a long-term investor in companies whose values you believe in.

Companies with long-term shareholders can:

• Make bold decisions without short-term market pressure

• Maintain strategic consistency

• Focus on sustainable value, not quarterly earnings

Look at Berkshire Hathaway. Warren Buffett famously refused to fill out ESG compliance forms. Why? Because he didn't want to participate in a value system that wasn't aligned with the company's goals. And guess what? Shareholders stayed. The stock thrived.

If you want to invest with confidence and conviction, own companies that align with your values and vision. Stay for the long haul.

Key Takeaways for Rule #1 Investors

• Understand the impact of tax policy and global politics on multinational corporations.

• Think like an owner, not a speculator.

• Avoid outsourcing your decisions to passive funds without understanding their values.

• Use a checklist to evaluate a company’s values, leadership, and long-term potential.

And most importantly:

Know what you own.

If you want to dig deeper into how to build an investing foundation based on ownership, values, and long-term success, I invite you to join us at our next investing workshop. 

Learn to invest like an owner!