Investing for the Future

July 29, 2008 at 3:23 pm 2 comments

“The word for today, class, is ‘CLEANTECH’.”

cleantech: noun, [pronounced: kleen-tek] 1. any technology that is environmentally friendlier than a comparable existing technology; also called green technology, example: solar power.

So you’re living the green lifestyle – generating your own power using solar panels, commuting by bicycle, bringing your own bags with you when you shop – but are you investing for the future? You likely are taking steps to ensure a comfortable retirement for yourself by investing your money in stocks or mutual funds. But are your investments as environmentally conscious as you?

Sir Francis Bacon once made the timeless statement, “Knowledge is power.” It is as true today as it was in 16th century, especially when it comes to planning for the future – not only your own, but to pave lead the way for generations to come.

Often people will make investment decisions simply on what the market is doing. If tech stocks are doing well, they invest in tech stocks. If commodities are better performers, then that’s where the money goes. As a result they often find themselves buying top performers at the same time many investors are all buying the same stocks. The likelihood of anyone getting a good price is very unlikely.

The best method of investing your green in companies that are green is to simply invest in what you know. If you’re thinking about investing in a company that manufactures green technology, ask yourself a few questions before you sign over your hard earned cash.

  • Is the technology viable or some bizarre concept that has no grounding?
  • What innovations are on the horizon that could potentially assist (or deter) the marketability of the technology?
  • Who is developing the technology – some fly-by-night or an established company with a history of successful ventures? (This is a loaded question: think ‘Cisco’, ‘Apple’, ‘Microsoft’.)
  • Who is backing the technology?

In short, do your homework. The more versed you are in environmental technologies, the more likely you are to pick the winner. The trick lies in distinguishing between the cutting edge and the lunatic fringe. The true key to cleantech investing is to invest in your knowledge rather than just buying a stock because you’re excited about a particular company or green technology. In fact, the key to all successful investing is to know the company you’re investing in as well as you know yourself.

By briansrapier

[via Ecogeek]

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Entry filed under: Emerging Technologies, Environment, Informational, Investing. Tags: , , , , .

Shrink Success Through Simplification

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