Entering text into the input field will update the search result below

Generational Investing: Divesting Away From Fossil Fuels

Nov. 01, 2017 2:56 PM ETDUK, F, GM, TSLA, XEL, DFSIX, PGRNX, CGJYX, ETHO, SPY, SPYX15 Comments
Scott Linge profile picture
Scott Linge


  • Strong economic reasons why renewable energy will overtake fossil fuels.
  • Fusion energy is here and it is basically free!
  • This strategic shift is because of our commitment to generational investing.
  • Manycarbon-based energy assets may be stranded due to renewable energy usage.


My wife and I are merely stewards of a certain amount of capital that has been in our family for generations. It is our duty to invest this for the long term (30 years minimum) and find stable but growing assets. Through research, we have decided to divest from fossil fuel extraction companies to a large extent. These companies have become an impingement on the portfolio performance. (We will not name them specifically because we don't wish to have this writing viewed as a polemic against any company). We now understand that the long term viability of renewable energy will provide a more stable and growing asset base since many of the renewables like wind and solar are now competitive or less expensive than traditional electric power.

We are planning to replace the standard large-cap equity exposure in our portfolio with an ETF or mutual fund that contains few or no fossil fuel companies.

Thesis of renewables vs. fossil fuels

The economics of certain renewable electric energy sources are at the point of equality with fossil fuels, and in the case of many wind and solar farms, cheaper; but always, renewables are less polluting and quieter. Clean fusion energy is available and free; look to the sky! (But do so with caution for your eyes.)

There is a major trend change in electric energy production and delivery. The old way is centralized fossil fuels; the new way is distributed renewables. Developing countries will be the greatest beneficiaries of distributed electric systems. There are many forms of renewable electric energy; however, wind and solar seem to be leading the rest. Demand for electricity is growing, but efficiency is too. Look at the LED (Light Emitting Diode) residential light bulb price decline of just the last two years! Everything I'm writing about is to some degree anecdotal; however, it indicates that a major trend change

This article was written by

Scott Linge profile picture
Started active trading in 1982. Have experience across futures, bonds, stocks, CEF/Preferreds and options. I have professional advisors on the large majority of our family holdings but reserve a portfolio to trade and enhance our income. Primarily I buy CEFs and write options in that account. Swing Trading Rules: 1. Don't lose. 2. Don't lose much. 3. Never let a profit become a loss.

Analyst’s Disclosure: I am/we are long SPY. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

Comments (15)

KerynA profile picture
15 Apr. 2019
Thank you Scott for your well-considered article.

By putting our human ingenuity and money away from the fossil fuel industries and toward research and developments of clean or renewable energy and energy storage solutions, and even carbon capture, along with changing our lifestyles to lower our ecological impacts, we have a chance of climate change mitigation or even rescue (long term). But by carrying on with business as usual with fossil fuel usage and infrastructure development, we are consigning most species on earth including humans to the worst of possible futures.

As investors, and humans with choices and responsibilities, for our families, friends and other creatures inhabiting our earth, we need to face up to the facts of what our fossil fuel usage has caused. We should all no longer be prepared to investing in fossil-fuel-related activities and industries which perpetuate the push over the cliff of global devastation on which we teeter.

Please fellow investors take time to find out more about why we very urgently need to stop fossil fuel usage:

David Wallace-Wells: ‘Why climate change is gravely worse than feared' | ITV News

Blue Ocean Event : Game Over? (nicely explains many points re Arctic events and implications)

Scientists' Warning at Foresight Group, EU Commission

Shed A Light: Rupert Read – This civilisation is finished: so what is to be done? Churchill College, University of Cambridge
Scott Linge profile picture
daytrait - Yes nat gas use is rising because as coal retires, NG is slighter cleaner and easier to handle. Still a Carbon Dioxide problem but not with mercury, sulfuric acid and other toxins. Brookfield looks interesting but since based in Bermuda I shy away. Good trading to you.
daytraitorhodlon profile picture
One thing that popped out from the total energy consumption graph was the increasing use of natural gas. Have you read about syngas, a renewable which is compatible with natural gas infrastructure? I also think waste to fuel processes will be increasingly important in the future. On the stock side of things, have you considered Nextera (NEE, NEP) or Brookfield Renewables(BEP)?
Bounce$ profile picture
This article makes total sense and is good forecasting. The writing is on the wall. I'm a Republican, but Big Oil and fossil fuels are on the way out and renewable energy is set to emerge worldwide. Big Oil is looking for ways to position itself in renewable energy. Edison has a solar subsidy. Exxon has a commercial about advancing renewable energy alternatives. If you are stuck in lifelong institutions like oil, gas, combustible engine automobiles, going under the knife, and yes, cash, you are going to get run over by a new generation. Get on lithium, MJ, molecular diagnostics, robotic surgery equipment, bitcoin and mobile wallet, and reap the benefits of emerging markets and technologies. Buffet's portfolio and the NYSE are going to have a totally new face in 10 years or less.
Scott Linge profile picture
Thanks Bounce, you have been active! For my purpose, I make small changes to a stodgy old man's portfolio and sit and think. I agree with the technology you cited, interesting and exciting, making the world a better place for some of us.
Siddharth Dalal profile picture
Interesting. Thanks for the good ETF/Fund options for divestment. I've also divested all my non-mutual fund assets from fossil fuels. One of the best, if not the best investments in renewable energy is solar panels on one's house.
Scott Linge profile picture
Thanks for the kind words, Siddarth. We looked at solar panels but the contractor was honest and said we didn't have enough South roof to justify. I thought it a good investment even in Minneapolis.
Siddharth Dalal profile picture
You will be surprised at how much power you can produce from non-optimal locations on the roof. I have 15 of 51 panels facing NW and they produced 83% as much as my SE facing panels (expectation was 75%)
Go geothermal in that area
Great company profile picture
renewable may take over one day but Tesla will be bankrupt way before then
Beg to differ. Oil still cheaper.
Disagree with this article? Submit your own. To report a factual error in this article, . Your feedback matters to us!
To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.