Page 33 - DIY Investor Magazine Issue 24

‘SUSTAINABILITY AND GOOD ETHICAL GOVERNANCE ARE NOW MAINSTREAM ISSUES’
The next question that needs to be asked is, where will the best market returns come from in twelve months time? The economies of the world will be hugely different from where they were at the beginning of 2020.
I do not have the knowledge to judge whether we will be living in a time of deflation, inflation or a 1930’s style depression, but large numbers of people are likely to have become unemployed thereby changing working practises forever.
I do think that it would be a mistake to ignore the ‘Greta’ effect, and the desire of many to improve the world’s environment.
Sustainability and good ethical governance are now mainstream issues, and there are a number of funds that provide a good return for people wishing to invest into these areas. At Saltydog, prior to the crash we had been using three such funds, and will undoubtedly visit them again.
• Royal London Sustainable World Trust
• (up 30% in 2019).
• Liontrust Sustainable Future Managed
• (up 25% in 2019).
• Janus Henderson Institutional Global Responsible Managed (up 25% in 2019).
This is really green and you are not going to run out
of water or electricity to power the process. There is already an Island in the Orkneys that is entirely powered by this fuel, and one cannot imagine this process not spreading further.
In the previous Thoughts of Saltydog Investor, I told you the story of my time on the Kingston Garnet, a deep sea fishing boat from Hull; the lesson I learned from the skipper was that if you have taken all the action within your knowledge to make the boat and crew safe, then you can do no more. The rest is luck!
This is not so dissimilar from investing in tomorrow’s stock markets; if they still look stormy and you feel insecure then take action and go into cash or the equivalent.
With the luxury of not having to carry on fishing to secure a livelihood, we can wait for the storm to pass – take it from the Sage of Omaha, ‘an investor’s most powerful weapon is patience’.
Best wishes and good investing,
Douglas.
Founder & Chairman * Warren Buffett
I also see no reason why technology funds in all their shapes and forms will not continue to perform, with biotech and green energy funds leading the charge.
There is now a new kid on the block called ‘Waterfuel’; this involves using electrolysis to cheaply, efficiently
and safely split water into hydrogen and oxygen. The hydrogen can then be stored for future use, when it can be fed into existing gas installations and also be used to power hydrogen driven car engines.
This process is perfect when there is an oversupply
of wind or solar created electricity which normally has nowhere to go; now you can create hydrogen for future use.
33 DIY Investor Magazine | Apr 2020