Greed is one of the Seven Deadly Sins used in Christian teaching concerning humanity’s tendency to sin. Sloth, lust, gluttony, wrath, pride and envy are the other capital vices that make the list.

As an investor however, is greed good? The phrase has been used time and again in reference to the famous “Greed is Good” speech by Gordon Gekko (played by Michael Douglas) in the 1987 film Wall Street, whereby he addresses a crowd of shareholders, of which he is one, confronting the company management's excesses and the financial problems faced by the United States of America as a nation.

Aside from the good acting in that particular scene, there are some lessons we can learn from Gekko's passionate attack on corporate and federal America.

#1 - "They made sure because it was their money at stake...today, management has no stake in the company!"

When senior management does not have a stake in a company, aside from salary and other benefits, they do not have a real interest in the company. If they have ownership however, they will ensure the company is run right. To protect their own company. Of course ownership does not guarantee results, but it is a motivating factor.

#2 - "In my book you either do it right, or you get eliminated."

This is true of any endeavour. Business is essentially a competitive sport. The players are competing for customers with market share and profits as some of the metrics of performance and eventually, the fittest trump the unfit.

#3 - "Greed, you mark my words, will not only save Teldar Paper, but that other malfunctioning corporation called the USA."

Teldar Paper had made a loss of $110 million the previous year but had 33 different vice presidents each earning over $200,000 a year. Gekko's words here were in reference to austerity and frugality, that if the stockholders were "greedier" with their money, they should have demanded more from management as to justify $200,000 annual salaries in 1987. If such accountability was demanded from the government, Gekko alludes, the fiscal deficit would not have been so bad.

I am personally a Christian and I do not advocate for greed and instead advocate against it. But in business...I think every coin, every shilling, every cent must be accounted for. In business, greed is not so bad.

Watch the full speech here