How to Strike 'Green' Gold

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I am looking for publicly traded companies that are in line with this new environmentally friendly ("green") era. How do I research these companies? -- C.D.

Go green!: We hear it almost everyday now. Our cars, our homes, even our diets are being transformed into environmentally friendly and health conscious versions of their former selves, but what about your portfolio ?

What Does "Going Green" Really Mean?

When we hear the word green, the idea of environmental crusaders might immediately spring to mind. But green (or, socially responsible) investing encompasses so much more than that. Socially responsible investing (SRI) is just what the name suggests: investing in public companies whose goals and primary business practices work toward the benefit of society. More specifically, it can mean investing in a company partly because you would like to see their nonfinancial agenda furthered. SRI can be environmentally motivated, but it can also be spurred by religion, lifestyle and political affiliations.

Pretty much any ideological argument can be turned into an opportunity for investing in a socially responsible company.

Green for the Planet and Your Wallet

Saving the rainforest (for example) is only part of the equation. Believe it or not, you can help the world while making money, too.

There are many reasons why socially-minded stocks perform, including like-minded customers who want their favorite company to succeed and innovative products that thrive under nontraditional leadership. Regardless, seeing growth in the "trees" as well as your portfolio doesn't have to be a rare phenomenon. Socially responsible investments do make money. However, like any other investment, there are champs and there are losers. Pick the right one and you can really cash out -- many of the best performing green stocks and funds beat the market every year ("Best, Worst Socially Responsible Funds").