Investors know that timing is everything. People trade stocks today as fast as the click of a mouse. Hedge funds are booming as managers take fast profits from trading stocks in volatile markets. Research shows that most professional equity and debt investors hold their investments in companies for two years or less. Where are the long-term investors that value fundamentals?
Smart investors know that sustained company success is determined by careful investing of capital over time. CEOs must make investment decisions that span decades. They must balance the interests of investors focused on quarterly earnings results with the long-term interests of employees, customers and citizens. These timing differences affect how investors view global warming.
Phil Hopkinson isn’t fazed by global warming. He has owned Cinergy stock for 22 years and plans to finance his retirement with Cinergy dividends. Denise Furey of Fitch Ratings expects global warming legislation will be enacted at the federal level within five years. She is a frequent speaker on how global warming might affect a company’s credit profile. The Reverend William Somplatsky-Jarman coordinates social and ethical dimensions of the investments of the Presbyterian Church (USA). To insure the long-term health of these investments, he wants the companies he invests in to proactively reduce greenhouse gases.
