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Green InvestingBy Noel Brinkerhoff
Investor: So what do you look for in your investments?
Analyst: Big bottom, and I cannot lie.
Investor: Excuse me? You mean a big bottom line?
Analyst: That's right. Double bottom is phat. Triple bottom, even phatter.
Investor: A double bottom line? I thought a bottom line had just one line: profits.
Analyst: No, sir. Today's investment world has all kinds of bottom lines. There's the traditional kind, like you said: profits - how a company is doing financially. But nowadays, some companies got two or three bottoms they're watching after. Those are my kind of companies.
Investor: So what's a double bottom line?
Analyst: The double bottom line is all about a company's social and financial return. It ain't just about how much money they're making, but how they're makin' it.
Investor: And triple bottom?
Analyst: Triple bottom consists of a company's social, financial, and environmental return. Green is good, right? All kinds of green. Cash green and Mother Nature green, as in environmentally friendly products. Companies like Gaiam can make you money and make you feel good about the earth.
Investor: But can a business that puts social and environmental concerns on par with financial gains really be a smart investment?
Analyst: Can you count to a billion? How about $40 billion? That's how much these companies average each year -- $44.5 billion in sales. And that's just the natural products industry. There are all kinds of other businesses out there making good money, and treating Mother Nature with r-e-s-p-e-c-t.
(Hands portfolio to Investor)
Investor: Hansen Natural Corp.?
Analyst: Ohhhhh yeaaaaaaah! Hansen's is hot. They make all natural sodas and juice drinks. They're huge. Distributed all over the world, and they ain't about pumping petrol or pumping bullets in some Third World disorder. They're about social and environmental change, human rights, a place where we can all breathe a little easier.
Investor (thumbing through portfolio): Wild Oats?
Analyst: Wild about it. Sells organic food, makes $1 billion a year in sales. Big on the environment, too. When they heard Canada was back clubbing seals again, Wild Oats (OATS) stopped purchasing all fish from that region and took their business elsewhere.
Investor: Look, I don't like clubbing seals any more than the next guy. But you got anything else, something a little less touchy-feely, but something that won't make me run to the confessional if I buy their stock?
Analyst: Fastenal (FAST). Good old fashioned stand-up kind of company. They sell tools and equipment without any mess. Doesn't waste its money on inflated CEO salaries, focuses on pleasing the customer and selling a quality product. Fastenal has been used in ethical funds, both for their business approach and the strength of their stock.
Investor: How good is their stock?
Analyst: It has split five times since Fastenal went public in 1987. They've paid a dividend every year since 1991. The company's growth rate has been tremendous, 20 percent each year for almost two decades.
Investor: Wow. Okay, I'm sold. But how can I learn more about investing responsibly?
Analyst: There are a lot of books out there on the subject. You gotta have Amy Domini's book on socially responsible investing, for one thing. And get yourself a great book about investing with your values.
Investor: I'm more of a magazine kind of guy.
Analyst: Then check out Business Ethics magazine. They'll give you the lowdown on companies that get it. Socialfunds.com is also a good source on socially responsible investing.
Investor: Great, thanks for the advice.
Analyst: Sure thing. Just remember: Bigger is better when it comes to the bottom line.
Investor: Double ain't no trouble.
Analyst: Something like that.
Investor: Triple, don't cripple.
Analyst: Okay, that's enough.
Investor: Right. Sorry.
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Copyright Noel Brinkerhoff - he is founder of Find Your Prosperity. He is a nationally-published writer specializing in journalism and screenwriting.
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