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Jun
18

Green Equity

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Green Private Equity
This post is basically an outline for investors new to the “green” investing industry with a focus on green equity and green private equity (the difference is explained later on). Investment equity is referred to as the trading of stock market shares with the intention of seeing a rise in the value of the stock as it directly affects the dividends and capital gains. That’s quite complicated to understand for some beginners but basically your buying the stock hoping that you will recover your initial investment through dividends in addition to gaining on the new higher value of the stock by selling it. Once your familiar with what green equity is you may also want to see this article I’ve written on green funds.

FTSE 100 - Average (2008)

credit: mujitra

What are green equity investments?
They are viable solutions for green investors who are interested in greater returns than savings. The most popular type type of equity investments is a government run portfolio that provides funding for small business that are developing technology for a greener tomorrow. Venture capitalists spent $0.3 billion more than they did last year in socially responsible companies (green investments). That being said, corporations have started a new phase (the going green phase), where they are trying to find anything to call themselves green.

Equity loan and finance
I only recommend equity loans to experienced investors. When taking loans or going into debt to make an investment it can be a huge risk. Its better to calculate the risks and possible outcomes before jumping into an investment. The typical repayment period for equity loans is between 5 and 30 years depending on the issuing party. Also dont forget that the interest you pay on the equity loan is tax deductible (investopedia).

Any investors planning on investing in green equity have lots of options. “green” equities span everything from renewable energy to cost effective technological breakthroughs. It depends on what the current market hype is focused on. Spread your investments to lower your financial risk, and remember to be cautious when making a large financial decision.

Categories : Green Investing
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Jun
17

Green Mutual Funds

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Green Investing Funds and Green Mutual Funds
In this post about green investing funds I’m going to give the breakdown on three of the most famous names in the green mutual funds business. I think these are probably the most reputable green growth funds to place my money in, but again its an individual choice based on risk evaluations. If your looking to invest in a green fund you can also take a look at my previous post about companies going green.

Hedge maze

credit: cybaea

Winslow Green Fund
The Winslow Green Growth Fund is probably one of the most famous socially responsible investment funds. They look for “green” companies to invest in around the globe. The scale goes as follows: 3/4 of the investment in stocks and 1/4 in bonds. The fund consists of a wide range of companies of all sizes that are developing greener methods of operating.

Virgin Green Fund
Another green investment fund which concentrates in corporations that are utilizing renewable energy. Around 1/4 of its fund goes to water stocks and the rest is spread to the expansion of growing environmentally friendly companies. Most of the investments are limited to the US and Europe unlike winslow which covers most of the world.

Jupiter Ecology Fund
The fund has a good age factor to show off in its portfolio. Outperforming for over twenty years. Their primary focus are investments in corporations which are providing practical remedies to environmental problems.

Although Jupiter might be thought of as a mid size investment fund, Im pretty impressed with their record so far. When it comes to investing in funds its good to take a look at all the options before making a decision, and hopefully this post will help to make you a more informed investor.

Categories : Green Investing
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Jun
16

Companies Going Green

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“Going green” is not just a concern for most ordinary individuals, but in a sudden movement companies going green has become an important part of corporate marketing. Companies that manufacture goods and release carbon emissions see the benefits of going green are not only contributing to the recent environmental restoration but also an increased interest by consumers. Im going to provide a list of green companies which I think have the best outlook for the future. If your new to investing and are not really sure where to start, you can read this definition of green equity I have written for beginners to the scene.

Top Green Companies

Some of my favorite green investments are from overseas corporations. Although there are many companies worth mentioning Ill mostly be listing ones from the U.S. Remember that making investments requires a substantial risk and each person should evaluate their own risks before investing.

Wind Turbines

credit: Caveman 922233

1. First Solar (FSLR) The first company to introduce a recycling program for solar modules and continues to find cost-reducing renewable energy options. Also the first company to introduce solar modules below $1 per watt (98c). High prospects for the future in my opinion.

2. Ormat Technologies (ORA) Ormat is another green energy companies that has gone public in the recent years (2005). Their dividend system is really a good benefit because they pay around twenty percent of their yearly profits

3. Organic Valley One of the biggest producers of organic foods and veg. Downside of this one is that the stock is only available in a few states and hard to get hold of. The company has seen record growth in the past years and looks like the expected forecast from next year is upward.

4. Vestas (VWDRY) Vestas is one of the largest producers of wind turbines for renewable energy generation. They’ve managed to make more than a thousand jobs during the recent expansion and have said that the economic downturn is increasing demand for their product.

5. Tesla Motors Telsa motors is completely dedicated to building electric cars. They are developing new technologies daily and hoping to make electric vehicles a viable possibility. Thats the rundown on some of my favorite green investments.

Green Energy Investments
So why the interest in green stock investments? I like them because they are the way of the future. Green funds have recently become popular because of the environmental advantages as well as financial benefits. The criteria for such “green funds” are that they are working to better the environment, manufacturing energy efficient products, or have a specific focus on being socially responsible.

Think about it from the consumer point of view. If your going to buy a product, you’d be more willing to buy a product from company thats using some of their revenue to help the environment. We get a moral satisfaction from contributing to a bigger cause.

Categories : Green Investing
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