Investing: survey builds case for 'green' stocks.The notion that environmentally friendly Environmentally friendly, also referred to as nature friendly, is a term used to refer to goods and services considered to inflict minimal harm on the environment.[1] policies are good for shareholders and customers alike often prompts considerable skepticism skepticism (skĕp`tĭsĭzəm) [Gr.,=to reflect], philosophic position holding that the possibility of knowledge is limited either because of the limitations of the mind or because of the inaccessibility of its object. . But there is mounting evidence that it's true. Consider a recent study by Winslow Management Co., a Boston-based money manager with just over $200 million in managed assets. Since it was created four years ago, the Winslow Green Index (WGI WGI World Games Inc WGI Winter Guard International WGI Within Grade Increase WGI Washington Group International, Inc. WGI Working Group on Informatics (United Nations) ), an equally weighted index of 100 "green-screened" companies, has had a cumulative increase in value of +98.5 percent. In comparison, the S & P 500 has had a cumulative decrease in value of -10.69 percent, while the Russell 2000 had a cumulative return of +32.77 percent. [ILLUSTRATION OMITTED] The annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. return for the period was +16.78 percent for the Winslow Green Index, in spite of the bear market of 2000 through 2002, while the annual return for the S & P 500 was -2.53 percent and for the Russell 2000, +6.62 percent. These performance returns cover the period August 1999 through December 2003. "Green stocks aren't likely to outperform Outperform An analyst recommendation meaning a stock is expected to do slightly better than the market return. Notes: Exact definitions vary by brokerage, but in general this rating is better than neutral and worse than buy or strong buy. their benchmark by a factor of more than three-to-one in all cases, but our study provides further evidence that green begets green," said President Jackson W. Robinson. "That is, we believe companies that care about the environment are well positioned to produce better returns than companies that don't." |
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