Wednesday, March 24, 2010

Growing Green Wealth

I think green businesses are the big opportunity for the next 25 years.

Today to be green is expensive. But over the next 10-25 years as commodities and natural material, resource become scares, it will be cheaper to be green. Leading to a large scale adoption of greener products and services.

Increasing government regulations, public opinion, consumer behavior, and competitive pressure will all lead to an accelerated development and adoption of greener products and services.

Companies with special green technologies will do better. Surely, greener companies are likely to do better from a profitability and sustainability point of view.

A lot of money has been made on scarcity of natural resources. There was a time when people who could mine and trade in natural resources made a lot of money. Then they profited from scarcity of these resource (in comparison to the demand) with inflated prices. People have (and continue to make) a lot of money on scarcity of a natural resources (such as land, oil, metals..).

Perhaps their profits will continue to swell for a while. But the resultant inflation on the consumer end will drive consumers towards green technologies. That's where we're likely to find the - 5X-10X-20X growth in profits and asset values. It's still benefiting from the scarcity of resources but the shift is towards efficient use (so it is a not-so-Demonic way to make money). Already greener car companies like Toyota that make efficient use of resource are more profitable.

I think there could be an opportunity to make a lot of money and because of it and besides it, a lot of good can be done on the way.


We are most certainly positioning my own company for this kind of scenario.


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