Investing in Green stocks is fraught with a lot of risk due to the following factors
- The demand and supply can fluctuate a lot as the industry is new and largely dependent on government subsidies
- Technological innovations can make the business models off companies redundant
- Unlike Dotcoms,green investments are capital intensive which makes it difficult for start-up to scale up in this space
However the Green Industry is going to be one of the Biggest Industries in the next decade and investors need take advantage from this coming trend.One way of doing it would be to invest in Mega Cap Conglomerates which have/will have Large Investments in the Green Sector.Though returns are not going to be out sized due to the large size of these companies and slow overall growth rates ,the attendant risk is also much less.The Top Five companies which provide a safe way to invest in Green Technology are
- Siemens – across the whole green spectrum from renewable energy (Wind , CSP ), Smart Grid ,Energy Efficiency,Lighting and Energy Storage.Some people in fact think that Siemens is the Best Green Investment
- General Electric – Like Siemens it has one of the broadest signatures in the Green Area.GE is already a top 5 players in the Global Wind Market,has investments in the Energy Storage , strong presence in Lighting,Energy Efficiency and Smart Grid but is way behind in Solar Energy
- Corning – This Glass Giant generates diverse revenue streams from Green Business.It is making Glass which goes into the solar modules while its Life Sciences Business makes products which reduce pollution from Diesel Vehicles and Coal Plants.
- Dow Chemicals – This material giant is making strong investments in the solar space like “Solar Shingles” .With its immense materials expertise , it is gaining strong traction from the makers of modules as it provides encapsulates and other materials which increase the efficiency of modules.It also holds a big stake in Hemlock which is the largest producer of polysilicon in the world(Main Raw Material for crystalline solar modules)
- Samsung – This South Korean Giant has made its intentions clear with huge investments planned into the Green Industry.Though its current green businesses are small,it has the Technology and the Balance Sheet strength to be the biggest player in this space.
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