can sustainable investing save the world?
what is sustainable investing?
This method of investing is also called ESG investing, and it is a new revolutionary method of growing your portfolio while helping our planet and our society in many ways, here is how it works.
Sustainable investing is the art of purchasing stockmarket company shares or any other securities from brands that have an environmental or social goal in mind, for example providing a carbon-neutral alternative to a good or service that already exists and has a bad environmental or social impact on our world.
Examples of this would be investing in innovative electric car companies, green energy, or slow fashion, among others. Every company that aims to change the world for the better would fit the criteria for ESG investing.
Overall, this method of growing your portfolio is aimed to have a great positive impact on our world, we will next tell you something about the best ways to do this.
How to invest sustainably
Now that you know what it is you may wonder what you have to do to start investing sustainably, how can you dominate the art of ESG or sustainable investing in order to make money making our world better, well, we have a three tips to you invest sustainably:
- Choose a good broker, there are many options that you can choose from online, all with their different characteristics, pros, and cons. There is an interesting broker out there called QProfit (Affiliate Link) that uses a machine that automatically trades for you using an intelligent AI without you needing to read tons of books to learn how to make a profit. Although we advise you to use this software with caution and this is not in any way financial advice.
- Choose good companies, don’t just invest in any company that is sustainable disregarding their financial situation, this can be pretty bad both for your wallet and the environment, as we will see next. Instead, search for great companies at a good price, that has great financials and run more on evidence rather than dreams, these are the companies that are the most likely to succeed, not only benefitting your waller but also benefitting our world long-term.
- Research the true goals and environmental impact of the company you are trying to invest in, don’t just choose to put your money in Zara because they have made some empty promises about becoming sustainable, instead, buy companies that truly want to have a positive impact on our world and that have solid plans and chances of doing so.
These were the three things you should do in order to start ESG investing, now that you know this, you should also know what you should NOT do. As Charlie Munger said, „Invert, Always Invert!” or „Just show me where I am going to die, so that way I’m never going there”.
how to not invest sustainably
You now have the information on what to do when it comes to ESG or sustainable investing, it is time to know what NOT to do, which is actually even more important than knowing what to do. Having said this, here are three things to avoid when doing ESG or sustainable investing:
- Do not invest in any company only because it is green or environmentally friendly, look for good financials and evidence that proves their activities. This will not only protect your wallet but will benefit the planet too, how so? Well, by choosing profitable businesses you are investing your money in the companies that will make the most out of every penny they have, and that translates not only into business success but also success in their mission, that being making our world a better place. An example of not to do is to invest in Tesla, they may have very innovative technologies and world-changing inventions, but their company is incredibly overvalued and will barely provide any profit if it provides any. On the environmental aspect of the equation, every dollar you spend buying Tesla will have a much lower impact than every dollar you would have spent in an undervalued sustainable company.
- Do not invest in the stock market without knowing anything, the best thing you can do now is to invest in yourself, and that is why we recommend this wonderful YouTube channel about investing intelligently, we are talking about the Swedish Investor (Not sponsored), where you can watch tons of reviews about investing books without reading them, although you should also read those books or listen to the audiobook version of them, and you can start doing that for free with Blinkist (Affiliate link) which has thousands of books that will help you extend your knowledge, with also the option to listen to the audiobook version of them.
- Do not expect returns in the short term, businesses take a long time to thrive, and so will your portfolio. The growth of your portfolio follows an exponential growth rather than a linear one, which means that in the first years you are going to receive little to no profits, while these will skyrocket after that initial amount. The same holds true for the success of the company you are investing in when following sustainable investing, it usually needs quite a long amount of time to start making a big positive environmental impact on our world. As Warren Buffet once said, „A stock market is a tool of transferring money from the impatient to the patient”.
That’s it, you now know the basics of sustainable investing, now that you know this, let’s review if sustainable investing can save our world and make a remarkable difference in it.
can sustainable investing really save our world?
ESG or sustainable investing is a great way of growing your portfolio while having a great impact on our world, but can this really save our world? Can sustainable investing really have that great of an impact on our world? Let’s see:
To understand the impact of sustainable investing we first have to explain what is the investor contributing by buying shares from companies. When investing in companies you are helping them get funds to continue with their projects, that in exchange for a portion of the company, which gives the investor rights to future profits and the equity of the company. Investing is crucial for the survival and thriving of the company, and if you do it correctly, every dollar you invest will be used at its maximum efficiency, creating wealth (goods and services) that will benefit our society as a whole, and the market will reward you greatly for that.
Sustainable investing is no exception, when you buy equity from a company with great goals to change our world for the better, you are helping that project thrive and that will have an enormous positive impact in the long term, much more than you would get donating to charity if you do it correctly, although one does not exclude the other.
Not only that, but research also shows that ESG or sustainable investing provides greater profits than regular investing, so this is really a signal for you conscious consumer and future investor to start with sustainable investing in order to change the world for the better.
summary
Now that you know a lot more about ESG or sustainable investing, why not start now? If you want to learn more about sustainability, slow fashion, and the problem with the fashion industry, feel free to check the articles linked below, or just check our blog where we have tons of different articles like this that you will enjoy.
We are thrilled to teach people all around the world 🙂 Also, did you really know what Fast Fashion really is and its terrible consequences for the environment, the planet, the workers, society, and the economy? Do you know exactly what the Slow Fashion or Sustainable Fashion movement is? You should really take a look at these articles about this forgotten and unknown but very urgent and important subject, click here to read „Can Fashion Ever Be Sustainable?”, Sustainable Fashion, Ethical Fashion, Slow Fashion or Fast Fashion 101 | How It’s Destroying Our Planet because knowledge is one of the most powerful strengths you can have, while ignorance is your worst weakness.
We also have a big surprise for you! Because we want to give you the right to know us better, we have prepared a carefully dedicated About Us page where we will tell you who we are, what our mission is, what we do, a closer look at our team, and many more things! Do not miss this opportunity and click here to check it out. Also, we invite you to take a look at our Pinterest, where we will pin everyday sustainable fashion-related content, clothing designs, and other things that you will surely love!
