Jan 16, 2022·edited Jan 16, 2022Liked by Market Sentiment
I took a look at the performance of stocks on the lists for 2005-2011 to see how the strategy performed in a decade that saw annualized returns of -0.95% for the S&P 500.
I am not sure if the companies that where in the list from 2012-2021 were in the 2005-2011 period but I am confident that there would be a decent overlap.
Even more proof that sustainable investing works in the long run!
Hey Walter! Great catch. Its 9% itself. The average 1 year return for the sustainable companies were 22.1% instead of 19%. That was a miss when we carried over the data to our visualisation software.
Once again thanks for highlighting the mistake. We have corrected it and updated the graph :)
Awesome article again! Just curious as to how many of these companies would habe been in the top rankings for sustainability back 10 years ago when you would have theoretically invested. Would be interesting to see what the returns would have been if you invested in the top ranked companies back in 2012.
Your returns if you had invested in particular time periods is already covered in the second graph.
If you had invested in the top rated companies in 2012, you would have made an average return of 282% till date (when compared to 258% if you had invested in SPY)
I took a look at the performance of stocks on the lists for 2005-2011 to see how the strategy performed in a decade that saw annualized returns of -0.95% for the S&P 500.
Key results as follows:
Holding Time, Avg Performance, Delta (vs S&P 500)
1 -Year, 13.29%, 9.21%
3-Year, 25.00%, 11.41%
5-Year, 53.89%, 16.46%
Till Date*, 488.62%, 187.28%
*Till date is Jan 10 2022
Whoa Jack. This is really cool!
I am not sure if the companies that where in the list from 2012-2021 were in the 2005-2011 period but I am confident that there would be a decent overlap.
Even more proof that sustainable investing works in the long run!
Great article! Thanks for putting it together for us.
Question: shouldn't the 1-year delta have been 6% and not 9% for the 1st chart?
Hey Walter! Great catch. Its 9% itself. The average 1 year return for the sustainable companies were 22.1% instead of 19%. That was a miss when we carried over the data to our visualisation software.
Once again thanks for highlighting the mistake. We have corrected it and updated the graph :)
Another great article! Superficially, you make money by saving the planet! 😁
Haha. Yes! It was a surprising insight. I thought that you would have to make some sacrifice for ethical investing!!
Awesome article again! Just curious as to how many of these companies would habe been in the top rankings for sustainability back 10 years ago when you would have theoretically invested. Would be interesting to see what the returns would have been if you invested in the top ranked companies back in 2012.
Hi James,
Your returns if you had invested in particular time periods is already covered in the second graph.
If you had invested in the top rated companies in 2012, you would have made an average return of 282% till date (when compared to 258% if you had invested in SPY)