Every investor wants to make money: with green investing you can feel good about it at the same time. One of the most popular investment strategies with our clients at KerNors Capital Group, we’ve also written extensively about it for our website guests in a series of two articles (Green Investing – Part 1: Help The Planet And Help Yourself and...).
Here, in our third article, we’ve asked Robert to share some of the most common questions he gets from investors interested in green investments:
What Is Green Investing?
While there’s probably no dictionary definition of green investing, I like to describe it to clients as investments that are selected at least partially by “non-financial” factors like business ethics, corporate governance, social responsibility, and environmental impact.
Many of my clients have done research themselves or partnered with our staff to select investments that meet their personal green criteria. These have included such projects as widely varied as alternative energy investments such as wind farms to certified green multifamily housing and commercial buildings.
Why Has Green Investing Become Popular?
Well I think that many investors would like to know that their capital, in addition to making a decent return, is actually doing some good. Add to that the fact that taxing authorities have reduced charitable deductions sharply over recent years, and many high net worth individuals are left with fewer attractive ways to make a positive impact with their money.
Beyond that though, is the growth in legal recognition of businesses’ “green-ness” through everything from certification programs to the establishment of B corporations legally chartered to benefit the public.
Truly there has never been a better time for investments with both societal benefit and attractive returns.
What’s The Best Way To Get In To Green Investing?
One of my favorite ways to answer this question for clients is to relate a story. One of my clients decided about five years ago to dedicate a small portion of her portfolio to green investing, did a good bit of research and then made some investments.
Late last year she came to me a bit discouraged by the performance of her green portfolio. We worked through her green investments together and found that while the social responsibility and corporate governance of the firms she’d selected were beyond reproach, their financial fundamentals were less stellar.
We were able to refashion her investments into a portfolio of financially strong firms that also operated ethically. The lesson to be learned is that investment fundamentals never go out of style: you can profit from socially responsible investing, as long as you do your homework.
Put The Experts To Work For You
Since our founding in 1924, we’ve always offered our clients the most innovative investment strategies carefully screened for fundamental strength. Green investing is no different: let us show you how to profit from socially responsible investing. Call today to get started.