Clean Energy Stocks Fuel Investor's Bullish Outlook
In early December 2008, one month after the general election, six weeks after I turned 50 and a week after collecting a hefty retainer on a long-term project, I decided to overhaul my stock portfolio. It had been in a ho-hum, buy-and-hold pattern for decades. That was too long.
Because mutual funds never performed well for me, and I aim to accelerate my return on my own investment (including time, money and energy), I designed my own portfolio: 80 percent individual stocks, 20 percent cash.
After allocating $100,000 to a simple money market account, it was time to exercise my entrepreneurial spirit, my environmental sensibilities and my faith in President Barack Obama's promise to invest in green technology.
My favorite personal finance website, The Motley Fool, yielded what seemed to be a potentially lucrative focus: solar technology.
In December, I stretched $400,000 equally across the Fool's top picks.
Here are some approximate results for me so far:
* First Solar, Inc. +34%;
* JA Solar Holdings Co. Ltd. -4%
* SunPower Corporation -40%
* Suntech Power Holdings Co. Ltd. +44%
* Verenium Corporation -27%
* Yingli Green Energy Holdings Co. Ltd. +71%.
My average ROI? +13 percent, or $52,000.
Looking forward, I'm feeling pretty sunny -- bullish, in fact -- about the stock market. The S&P 500 is back in the black, and I've seen signs that folks are feeling more optimistic about the economy. Parking lots at the local SuperTarget and shopping malls are getting fuller every day.
I thank President Obama. His first piece of legislation, the American Recovery and Reinvestment Act, delivers mightily on one of his campaign promises: To fuel America's economy and desire for energy independence, new science funding, local energy efficiency improvements and solar and wind energy.
I intend to continue my 80/20 investing plan -- only more diversified. Every week, while dollar-cost averaging my investment funds, I'm open to technologies and communities that are optimizing Recovery Act allotments.
In six months, my portfolio will include another handful of stocks and bonds that aptly reflect the win-win innovations in energy and public policy.
Published by Kari Larson
Kari Larson is a writer, PR/public affairs/marketing/social media pro, and editor and publisher of GoodBiz113: Showcasing Socially Responsible Small-Business Policies and Partnerships for the Greatest Possib... View profile
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11 Comments
Post a CommentGreat article, I don't know a huge deal about the stock market, but it seems like you took the bull by the horns and made decisions that worked for you! congrads and I hope it holds out. maybe oneday I will have that kind of money to invest!
"Bull" is certainly an appropriate first syllable with which to begin any discussion of energy companies.
Wow, very bold. At least diversify between industries, please. That way you won't be SOL if everybody decides old oil is better than the new technologies.
Nice article. I always went the mutual fund route but after reading this it might be the time to take more control of my portfolio.
-tamed demon for Mistress Dolly
Nice pieces and well written. I believe in self direction as the optimal way to express yourself while also helping your retirement funds. Be careful with small caps because when they drop they drop fast. That said I like your doing what you feel is the best economic choice for you but there are millions of Americans that have lost a ton on their most priced asset, their home. This at a time when not much else can help them recover because their retirement assets are in the toilet and the have no borrowing capacity to match. This was all brought on by insurance companies, wall street types and banks.
Not quite sure I want to go back to being bit after black friday, the tech bubble burst, savings and loan fiasco and the great government bailout of 2008.
Good work and great discussion point.
Good article, be skeptical on the bullish energy stocks though, make no mistake stock prices will climb but will fluctuate all summer. Higher energy prices will induce supply shock which will actually hurt us even more. My uncle is a stock broker and he is feeling very bullish about the market; however still taking precautions.
L.E.: Thanks for the attagirl -- and the stock tip. It's now on my watch list... :)
Moursalen [Part II]: Then there's the young $10-per-hour deli worker who, thanks to recently receiving a federal subsidy, was able to move from the noise, pollution, danger and depressing nature of her lower-class neighborhood, to a modest apartment of her own in a middle-class area. There, she actually feels safe strolling the tree-lined streets; enjoys peaceful nights' sleep and the sound of birds singing outside her window [rather than heated arguments, blaring car horns, etc.]; and, for the first time in her life, feels inspired to aim even higher as an educated and productive member of society.
Are these tough economic times for America? Yes. But I believe that, in the end, we'll all emerge stronger, wiser, healthier, wealthier and -- here's the best part -- more empathetic for the have-nots among us. Each of us just has to do our part to make that happen.
Moeursalen:
First off, I appreciate you taking the time to comment on my article. I was reared to *not* discuss money. So, this baring-my-portfolio-soul thing was a bit new. Glad you found my eco-conscious analysis helpful.
I'm thanking President Obama for his Recovery Act's short- and long-term potential to truly level the socioeconomic playing field -- via "green" jobs, education, health-care access, small-business loans, etc. And if that means taxing America's wealthiest citizens to help pay for ARRA's far-reaching aims, so be it. We're all in this together, and it's long past time for *everyone* to pay his or her fair share for the greater good.
Earlier this month, Oprah aired a fascinating show about America's shifting social classes [http://tinyurl.com/qua8l5]. Among her featured guests was a longtime Denver TV anchor who was "downsized" from his $230,000 job last December, and now works as a veterinary assistant at $30,000 per year...and loves it!
Then there's the y
Kari,
Great start on your first three articles! I don't believe that we are out of the woods yet. However, I do believe there will be some awesome investing opportunities in the very near future. I also wish you luck in the small cap arena. Have you looked at GSAE? Good luck with your investing and your writing!