6 Alternative Green Investment Strategies for 2009
Pharmaceutical company Novartis is Portfolio 21's largest holding - photo: Novartis.
3) Ride Out Losses and Stay With a True-Blue Sustainability Fund
The difference between owning the Dreyfus Fund and owning Portfolio 21 is the manner in which companies are evaluated and analyzed for their sustainability quotient. Paul Hawken, in his review of SRI funds, gave Portfolio21 praise for its methods in establishing companies' commitment to some type of environmental framework in their business dealings. Danish company Novo Nordisk is in the DSJI World Index and also in the Portfolio 21 Fund. 3M and UPS, however, were both rejected by Portfolio 21's analysts during 2008, while they both remain in the DSJI North American Index. Portfolio 21 suffered along with the rest of the stock world during 2008, however. During the 3rd quarter of 2008, the fund was down 14.38%, doing worse than the S&P; 500, which during that same period lost 8.37%.
Some individual "small cap" green stocks such as Green Mountain Coffee Roasters have done well.
4) Research a Few Stocks and Stick for the Long Term
Stock picking can be a hazardous and research-intensive process. We wouldn't recommend a particular company, even if it is green. But MarketGuru is an online investing community where members get ranked by their peers. One of the online gurus, greenprophet, recently selected a basket of green stocks, with companies like Green Mountain Coffee Roasters and Environmental Power Corporation for a test portfolio, and to see how well they would do against the other indexes, such as the S&P; 500 and Nasdaq. Started in late November, the stock basket is currently staying ahead of those indexes. Invest at your own risk and be in it for the long term.
5) Put Your Money In the Walls, Under the Floor and On the Roof
For the average homeowner, there are definite benefits to going green. What if you were totally off the grid and never had to pay another energy bill? That's a big ticket proposition requiring thousands of dollars. But there is money to be saved on utility bills at all income classifications, says Justin Rowell of Greenmodeling. And here's an added benefit - it creates good green jobs for a lousy economy.Take a peek at this master list at greenandsave.com of different green home projects and their estimated savings: It is surprising to see how some unexpected projects can generate real savings. Sealing duct leaks, for example, can have a 10-year return of around $3,000. Investors can take advantage of a $500 federal residential energy tax credit that was rescinded in 2008 but returns in 2009. The credit can help with adding insulation or replacing doors, windows, or furnaces.
6) Keep Your Cash Local With Community Supported Investments
ShoreBank is a community development bank with branches in Portland, Oregon Detroit, Chicago and a few other locations in the U.S. ShoreBank directs its investments to the local communities it serves, and in addition to interest-bearing checking offers Eco-Deposits--certificates of deposit which give interest rates of up to 3.14% for a five-year investment of a minimum of $500. Deposits at ShoreBank are FDIC insured.Another option for community investing is Calvert's Community Investment Note, which offers up to 3% return (not FDIC insured) and allow you to both choose your interest rate and the community you would like your money to target.
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