Tuesday, December 11, 2007

Getting to Green

This blog will follow my journey as I move from a standard retirement portfolio full of boring auto-pilot Fidelity mutual funds to a more ethical, dynamic portfolio. At the same time, I'll be a launching a website that will help personal investors research how socially responsible companies are.

Currently, my portfolio consists of 28 funds. 23 are Fidelity, with a smattering of other funds I like. I use Fidelity for indexing (40%), International investing (including a lot of indexing) and sector bets. This year, my two sector bets were Gold and Health Care, both of which have worked out very well. As some of these bets expire, I'm going to actively look for ethical investments (funds and stocks) that I believe also have strong return potential.

The first move that I'm making is an idea I got from Jim Lowell of Forbes Magazine. I'm picking up Powershare CleanTech (PZD), an ETF currently trading at $34.64. Today was a terrible day on the market with the Dow down 294 points so with the free cash from selling out of gold at an all-time high last week, I'm going to buy PZD. This provides some exposure with balanced risk to a key sector. I'm very bullish on GreenTech.

Forbes, focused around leading analyst Richard Keiser, provides some reasons as to why. But it's not just Keiser. It's high energy prices, plus what I see as a continued huge capital inflow into GreenTech that excites me. Being at MIT, you can see how evident this trend is. VCs can't throw money fast enough at any viable GreenTech idea.

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