Sustainably investing - My stock picks for 2020 and beyond
As the world slowly but surely re-emerges from COVID lockdowns, as a keen investor and stock market enthusiast, I've also slowly but surely been building up my investment portfolio from the ground up. This time with a more ethical, mindful and sustainable focus.
In this post, let's take a deep dive into some of my sustainable stock picks. I won't be touching on my exact portfolio, other asset allocation (commodities etc.) and weighting's in this post - just focusing on my current approach to screening and selecting companies to invest in. If however, you're interested in finding out more about my entire portfolio, let me know by sending me an email at firstname.lastname@example.org
Quick note: I'm not a finance expert and this is not investment advice. One thing i've learnt the hard way when investing / trading is always do your own research and don't listen to hot tips and the news when it comes to building your portfolio.
My Stock Picking Strategy and Goals
Of course, a main goal of ours (my wife and I) is to make a decent return on our investment and grow our portfolio to be a substantial means of income in the mid to long-term. However, as self-proclaimed socially responsible investors / people, we're generally on the look-out for ETF's and companies that
a) Have a positive impact on the environment (i.e green power, waste reduction and plant-based, organic products).
b) Actively advocate, promote and commit to making progress towards racial equality.
c) Something else
With that said, as of July 2020 there are 3 companies that have peeked my interest and one ETF (investment fund that holds a group of assets).
Ormat Technologies Inc. was founded in 1965 in Israel by a husband and wife engineering duo. What was once only available on the Tel Aviv Stock Exchange, now available on the NYSE since 2004, has a strong track record of devising and providing alternative and renewable energy largely in three main areas (Thermal, Solar and Oil Sands). With operations around the globe and currently sitting at a near approximately -14% on the year, Ormat Technologies provides a nice underpriced gem in the renewable energy field.
Rather than providing alternative energy, Covanta Holdings develops and operates facilities across America, Europe and China that produce electricity from waste, recover metals from the waste stream for recycling, and provide other industrial waste management services. Again, like Ormat, Covanta is sitting at what I consider to be a bargain at nearly half the price as it was at mid 2019. Analyst are largely in agreement that Covanta is sitting at just about fair value, making it an idea hold buy for the medium to long-term.
This is one that has been hitting all the headlines since it's IPO sky rocket. However, this plant based meat producer is not one for the faint hearted with 52-Week range between approximately 50$-240$, based on that the previous close price of around 128$ put's Beyond Meat slap-bang in the middle of the range with huge potential upside and downside based on that range alone. But in my humble opinion, plant base meats are not going anywhere and if you care about the environment, actively deciding to buy into the meat production industry or not is, over the course of your lifetime, one of the most effective and valuable means of contributing to a cleaner planet.
iShares Global Clean Energy ETF
The only current ETF in my portfolio and one of my top performers (up nearly 15% this month alone), the iShares Global Clean Energy ETF is a fund that focuses solely on exposure to companies that produce energy from solar, wind, and other renewable sources. With the added bonus of cross-globe, diversity, this fund has just made new highs during the last month. Personally, I just sold a few units of this ETF, but with the full intention of buying back in as soon as the price falls a little bit. Despite my limited expertise in investments, I would suggest that if there is one takeaway from this article, it would be to add this ETF to your portfolio.
So, that's it. A few recent stock picks that I will be adding to my portfolio in the coming weeks / months. As we look ahead to the post-COVID times, I believe now is a good chance to start reevaluating your current portfolio and look to future. In my opinion and experience, there's no point and very little success in trading for the short-term - especially with the recent bailouts, money printing and US elections - I've tried trading those moves and lost. So I look to problems, needs and cultural shifts that require real solutions and change and the companies making tangible steps to solving them.
Alongside this, these days I also spend most of my time looking to seasoned investment veterans like Jim Rogers, Warren Buffet, Stanley Druckenmiller and other investors (not traders) and more importantly what aligns with my families values and ethics, more than what can make me a quick pound.
If my pounds, dollars or riels can contribute to making the world a better, more sustainable and healthier place, that to me is something worth investing in. I believe it's entirely possible to advocate change with your dollars and make a return as an investor - do you?
Let me know your thoughts by email at email@example.com