Starting a company, building a company, running a company, is hard.
But that’s old news.
When I was in high school, I decided to start investing in the stock market. I worked until I had enough money and bought $200 worth of stock in a solar company called SunEdison.
Within two years, SunEdison declared bankruptcy and I lost all $200. To this day, that was the single best investment I’ve ever made.
This is a brief post describing the basics of impact investing. In it, I will discuss the ways in which you can practice it as well as the social, ethical, and financial benefits of this particular investment strategy. Enjoy!
A few days ago, The Dynalect Team published a report on the clean water industry. In it, we recommended several stocks and ETFs that we believed to be the best equipped to benefit from an increased in demand for access to clean water. While all of our recommended securities were in some way related to the water purification industry, some of them, like Consolidated Water Company (NASDAQ: CWCO), which desalinates saltwater in several South American and Caribbean countries, are directly involved in providing potable water to people where there is insufficient access to clean drinking water.
Last week, I wrote about several market theories: the greater fool theory, the prospect (loss-aversion) theory, and the efficient market hypothesis. This week, I’ll be discussing just one theory – the random walk theory. Because it’s so consequential, and because it proposed such a large separation from ever so popular technical analysis, this theory has been hotly debated since it initially became prevalent in the 1970s.
Go online, turn on the TV, or if you’re real old-school, open a newspaper. Either way, when you go the financials section you’re bound to see the same thing every time: people trying to predict the stock market. Now, of course people are going to try to predict the market; there’s $5.1 trillion traded on the foreign exchange market every day, and billions of dollars in profits to be made – if you can just predict correctly.
You don’t have to look far to see that copious amounts of money are spent on attempting to do exactly that – correctly predicting where the stock market is headed. Hedge funds, banks, news sources, fundamental/technical analysts, and many others pour countless resources into predicting the timing and nature of shifts in the market, but to what extent are they successful?