In this line of work, I encounter investors of all kinds. When it comes to taking environmental matters under consideration, I've seen some who will invest in a stock primarily on that basis, but more commonly I find that the environmental achievements of public companies tend to fall on deaf ears.
I believe a happy medium lies somewhere in the mix. Selecting a stock primarily on the basis of ecological karma or visions for a shrinking human carbon footprint can feel peachy... until harsh economic reality sets in. I do hope for a tomorrow where renewable energy drives a more sustainable way forward, but my own painful experience with a (former) pet solar stock serves as a constant reminder that hope does not typically form a solid foundation for an investment thesis. The following one-year chart depicts the recent performance of the PowerShares Wilderhill Clean Energy Portfolio
SPDR S&P 500 Stock Chart by YCharts
Making sure that green makes you green
While illustrating how quickly green investing can put you in the red, the above chart also shows how a happy medium of combining an environmentally sensitive corporate ethos with powerful economic fundamentals can help ensure that going green makes you some green. I have touted Waste Management
And ever since railroad operator Norfolk Southern
The greenest locomotive
All of the North American railroads have done a terrific job revolutionizing fuel efficiency and upgrading their respective fleets while defending profitability through a challenging economic cycle. I am in awe of their collective operational achievements. By leading the charge toward hybrid locomotives and now renewable diesel fuel -- and also through the company's effort to plant more than 6 million trees in the Mississippi Delta -- I believe Norfolk Southern has set the industry standard with respect to environmental stewardship while remaining an absolute stud of meaningful profitability. By selecting the greenest locomotive, I believe investors can keep their ethical priorities intact without sacrificing the other sort of green.
- Add Norfolk Southern to My Watchlist.
- Add Waste Management to My Watchlist.
- Add Syntroleum to My Watchlist.
- Add Tyson Foods to My Watchlist.