How to Strike 'Green' Gold

Are Some Green Companies Just Blowing Smoke?

Addressing social issues has become the fashion these days, even for huge multinational companies ("Wal-Mart, Home Depot Go Green"). Public relations firms shoot out press releases left and right touting the environmentally-minded products and initiatives their clients are launching on an almost daily basis. Just because a company is talking to the media about their emerging social awareness doesn't make the company a suitable socially responsible investment. Researching the impact that a company's green policies have on their business as a whole is the best way to tell if they're the real "green" deal.

What About "Sin" Stocks?

On the opposite end of the spectrum from green investing are the sin stocks ("Cramer's 'Mad Money' Recap: Sin Stocks"). Sin stocks are companies whose products aren't something you'd enjoy on your church picnic. Gambling, tobacco and alcohol companies are all examples of sin stocks. If your moral fabric isn't too badly torn by the idea of investing in these types of companies, think about this: Sin stocks usually boast huge margins and a customer base full of disposable income. If going green isn't your cup of tea, sin stocks can be one "hell" of an investment.

Weighing the Alternatives

Socially responsible investing is basically a balancing act: Do you select companies primarily on their good deeds or do you focus more on companies that will provide a big return? Remember, the two aren't necessarily mutually exclusive, and you should personalize your ethical portfolio to suit your needs as both an investor and as a human being.

The Toyota Prius might not have as much legroom as your Hummer, but by taking a look at green investing, you can help make a positive contribution to society and make money at the same time.

To learn more about green and socially responsible investing, check out these videos on TheStreet.com TV:

• Screening for 'Green' Stocks
• Money and Morals
• A Banking Advocate
• BearingPoint Pounds the Pavement
• Timberland's Green Goals
• An Environmentally Friendly Mutual Fund
• Big Blue Boasts Green Initiatives
• Wall St. Confidential: Cramer Says Solar Stocks Overheated