Larks comments on Impact Investing - A Viable Option for EAs? - Effective Altruism Forum

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Comment author: Larks 11 July 2018 10:55:08PM 3 points [-]

(quoting from the open thread)

The timber is sold after 10 years, conservative return to the investor is $20k

This kind of investment would be considered high risk - this company only started this program three years ago, and the first trees haven't yet produced profit.

This sounds extremely suspect. Conservative investments do not generate 23% CAGRs, and there are plenty of investors willing to fund credible 10 year projects. Timber was a particularly fashionable asset class for a while, and 'enviromental' investments are extremely fashionable right now.

[This is an opinion and is for information purposes only. It is not intended to be investment advice. You should consult a licensed financial advisor for investment advice. This is not the opinion of my firm. My firm may have positions in the discussed securities. This is not an invitation to buy or sell securities].

Comment author: Gregory_Lewis 12 July 2018 01:09:06AM 3 points [-]

I'd also guess the social impact estimate would regress quite a long way to the mean if it was investigated to a similar level of depth as something like Cool Earth.