The HIP Investor Book

The HIP Investor:
Make Bigger Profits by Building a Better World
by R. Paul Herman

Published by John Wiley & Sons (April 2010)

Capitalism used to be easy. Discover, acquire, and defend a unique resource. Pay people the least you can get away with. Off-load as many liabilities and risks to government as possible. And, of course, collect the profits in as short a time as possible. These captains of industry used to be called robber barons. Today, they are simply called Capitalists.

The super-majority, about 7 in 8 dollars, of assets managed focus on a purely capitalist approach, which typically prioritizes short-term financial gain. However, this traditional approach has accelerated the number and intensity of societal problems.

To counter that, investors have allocated about 1 in 8 dollars managed to “socially responsible” investing — typically excluding “bad” companies from their portfolios. This has relieved some consciences, but in many cases the majority of these funds have failed to beat the typical benchmark. (Most mutual funds of the capitalist approach don’t beat their benchmark either.)

Now, there is a new investment approach – one that seeks bigger profits that capitalists pursue while building a better world that do-gooders desire. The goal is to generate human impact and profit, or “HIP,” simultaneously.

  1. The New Fundamentals of Investing: Building a Better World Drives Potential for Higher Profits

  2. What 4 Global Trends Will Drive 21st Century Investing?

  3. 5 Product Categories Seeking Billion-Person Markets and High Revenue Growth

  4. 5 Metrics You Probably Won’t See in the 10-K (But Wish You Did)

  5. How Measuring Health Can Strengthen the Bottom Line

  6. The Wealthy Employee: Why Money Ought to Go Below the CEO

  7. Reduce Waste, Energy and Water – and Boost Your Bottom Line

  8. Does Your Company’s Diversity Match Your Customers?

  9. Which Firms Should You Trust?

  10. Practices Make Perfect: 5 Aspects of Sustainable Management

  11. How a Compelling, Human-Centered Vision Inspires a Company

  12. Metrics That Matter: How Quantifying Good Can Lead to a Better Bottom Line

  13. The Greenest Part of Your Business Can Be Your Financial Statements

  14. Who’s in Charge Here? How Bottom-Up Empowerment Still Needs Top-Down Accountability

  15. When Seeking Long-Term Profit, Consider Long-Term Environmental Risks

  16. How to Boost the Bottom Line with Sustainable Products and Initiatives

  17. What Secrets Are Hiding Off Your Balance Sheet?

  18. Paying Attention to Risks Pays Dividends to Sustainable Investors

  19. How HIP are Your Holdings? Score Them for Human Impact + Profit

  20. How to Be Sustainable Across All Assets in Your Portfolio

  21. Where Does Your Cash Sleep at Night?

  22. Loaning Your Money for Impact Can Also Generate Income

  23. Venturing into Growth Industries with High-Impact Capital

  24. Rooting Your Portfolio in Positive-Impact Farmland, Real Estate and Housing

  25. Give Money, Get Impact, Save Taxes – the Power of Social Entrepreneurs for Your Portfolio



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Global Handbook of Impact Investing