If it is green, then it is pricier. False. The expense that was not accounted for was death, because mankind is greedy and only cares about its own well been. If that death had been priced into processed goods and services, then today’s green products would not only be much better but way cheaper, too.
Since today’s society has no place to stop, to turn, nor to embark on the right path, green products are left with the additional burden of being cheaper when compared to clearly harmful alternatives. The surprising thing about that, is that they are indeed showing their many benefits, also when it comes to price.
Do you know anything about the waitlist for a Tesla Model 3? It is HUGE. However, if we should extrapolate the proportions of polluting cars vs. pure play clean cars that will hit the streets in coming years, to estimate the state of the heart of consumers, then I know many who would claim that we are completely lost. It is INSIGNIFICANT. Do not get me wrong, I am sure Elon will be fine.
So, the first eco-friendly funds needed here are mine and yours — our wallets need to reflect that we are not paying lip service but that we are substantially committed to going green.
At the institutional level, we are also setting up a family of eco-friendly funds to invest in 7-8 green companies, each requiring from $50 to $250 million. We are considering opportunities in The Americas, EMEA and Asia-Pacific, while making sure to be diversified across all sectors of the economy.
Our focus is on spotting the creation of value. EBITDA, ROIC (WACC), D/E Ratios that trend in the right direction on the one hand, and reinvestment dynamics that absorb liquidity with high efficiency on the other hand. A humble management team to lead it all.