Green Investment Distortions

by | Apr 1, 2008 | Archives

Green investment distortions create opportunity.

See more pictures below that show how these people are working and why creating opportunity is enjoyable and fun.

Green Investments

One great way to invest is to look for contrasts and distortions that create value.

For example, here is a contrast. Two houses next to each other on the same beach.

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Guess which one Merri and I would be likely to buy? Correcting distortions?

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Here we are working hard inspecting houses on the beach. Tough work!

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Who says that making profit cannot be fun?

Readers currently deluge me with doom and gloom articles. They buy into the “end of the world” fantasy ignoring the fact that today’s economic problems create the greater opportunity. Problems are opportunity! The more problems…the more opportunity.

This why yesterday’s message about green investment ideals looked at the controversial environmental ideas of Dr James Ephraim Lovelock, a controversial British scientist, author, researcher, environmentalist, and futurist.

The environment may be mankind’s biggest problem of all…one that can move humanity to a much higher and happier level.

Thus green investments offer the greatest opportunity.

Yesterday’s message reviewed nine aspects of Lovelock’s thinking. Now let’s look at how Merri and I have responded to the contrasts and distortions that these environmental shifts are making in the world.

The first two ideas formed by Lovelock’s thinking are:

#1: Focus on innovation not conservation.
#2: Invest in technology.

We really jumped on these green investment ideas with the Green Investment Portfolio we created in November 2006 with Jyske Bank. This portfolio consists of six shares…all focused on innovative, environmental technology.

Now the collapse of stock markets worldwide creates distortions for extra opportunity in environmental areas. The non leveraged Green Investment Portfolio has dropped over 20% since last November (2007). This means some of the green investment shares we track may be under valued.

Some of the shares in the portfolio, such as Vestas Wind Systems offer special green investment opportunity. This is a company that thrives on innovative environmental technology.

The Green Investment Portfolio invested $51,000 in Vestas last November. Those shares are now worth $62,2323.

Vestas is the largest wind generator maker in the world. Jyske Bank has a buy recommendation on Vestas shares. The firm is in a transition stage. In early years, Vestas focused on gaining market share and did not worry so much about profit.

Vestas’ share of the 2008 market is expected to be 25% against their previous market share of 30-32% (due to newly-arrived Chinese rivals) but Vestas now has a higher priority on profit than market share. They built market dominance earlier. Now they make the profit.

At the end of 2007 Vestas had an order book of orders for 4,415 Megawatts, computed at a value of 4.8 billion euro ($7.2B). The market doldrums has depressed Vesta’s share price.

This is a classic investment distortion…short term unpredictable market sentiment created by corrections in other sectors depress parts of the market that should rise.

Environmental problems have not disappeared because global stock markets have crashed. The environment is a huge problem. Wind energy s a great opportunity and if Vestas’s share price is held back this is a distortion.

Here I am speaking at a Jyske Bank seminar with a panel of international portfolio managers and a Vestas VP. Hard work spending a week in Copenhagen. Or is this enjoyable and fun?

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Moving on…more ideas created by Lovelock’s thought.

#3: Prepare to adapt to new ways of living.
#4: Crisis will bring a post consumer society.
#5: Human lives are most fulfilling when driven by a sense of purpose.
#6: We will soon be forced to live more purposeful lives.

More than a decade ago Merri and I shifted our lifestyles to doing more than making just money.

Look at the last paragraph of our home page. That page says:

“Then Gary changed his entire financial message because in his decades of global research and teaching he unearthed investments that were among the century’s best. Some readers(and Gary) made millions. Yet a haunting question gnawed at Scott. Information he gave all his readers was the same. Some investors earned fortunes. Others made only a little. Some lost! Why did some succeed while others failed? Gary’s quest to answer this question and uncover the deepest fundamentals of wealth have resulted in the information shared at this site.”

This quest was for a more purposeful way to invest and do business and I wrote:

“How can we keep up, without having such a fast paced life we turn into machines? Where do we find time for God, family, charity, and our friends? How can we rediscover those sun filled, pine needle covered, dirt paths we want to walk?

This started a search for a simpler way of life and a better place to be. The difference between success and failure was a matter of attitude or if you like spirit.”

See that entire spiritual message.

Here Merri and I go to work in our Blue Ridge deep woods office.

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We formed Land of the Sun Foundation.

The foundation gives hundreds of Ecuadorian school children a lunch in our hotel.

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The children thank us.

Green Investments Many have never eaten in a restaurant before.

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Finally I could not agree more with the last three ideas that come from Lovelock’s thought.

#7: There is always reason to be optimistic.
#8: Start looking for investment properties in Iceland.
#9: Enjoy life!

Many people feel ruined by Florida’s problems. Merri and I believed the opposite. We did not move to Iceland but we did sell all our property in crowded Florida and shifted our entire emphasis from crowded places on the coast to small villages in the Blue Ridge and Ecuador.

Expanding our horizons in this way has not only been enjoyable. The profits have been huge. We have seen our investments rise dramatically! Florida’s problems…crowded coastal cities sitting in a hurricane zone…have created enormous opportunity on the quiet Ecuador coast and in the North Carolina mountains.

Enjoyable? This entire process, learning new places…meeting new people…seeing new sights and hearing new sounds…gaining new tastes has been as exhilarating as it has been profitable! If a rut is nothing but a grave with the ends kicked out…then a new lifestyle is the opposite…life enhancing… fun…healthy…exciting as you wake up again with a sense of expectation. How much is that worth?

Here I am inspecting Cotacachi property. Solving problems keeps me happy and healthy!

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There is one more thought on the subject of Iceland and the enrichment that comes from correcting distortions …see more on this in tomorrow’s message when we review a distortion that can create extra profit with almost no risk at all.


Join me with Thomas Fischer of Jyske Bank at our May 23-25 International Investing & Business Made EZ North Carolina

Enjoy new sites and sounds with us in Ecuador

Green Investments

April 16-17 Ecuador Imbabura Real Estate Tour

May 13-17 Ecuador Import Export Tour

June 7-8 Coastal Real Estate Tour
June 11-15, Super Thinking + Spanish

June 16-17 Imbabura Real Estate Tour
June 19- 21 Ecuador Shaman Tour