Synopses & Reviews
Is it possible to make bigger profits while building a better world? Yes, if you are a HIP investor. Most investors have focused on a capitalist approach—chasing short-term financial gains, but risking societal, environmental, and economic stability. An increasing minority follows a socially responsible philosophy—excluding "bad" companies from their portfolio—that often leads to lower long-term returns. A third way, transformational for the investing world, is revealed in this book: a "HIP" approach that can realize the bigger profits that capitalists seek while building a better world that the socially conscious desire. HIP stands for Human Impact + Profit. With this book, you'll discover exactly how to incorporate it into your investment portfolio.
In The HIP Investor, R. Paul Herman—creator of the HIP methodology and a leading investment manager—introduces a systematic approach for investors that is designed for more attractive profits and positive human, social, and environmental impact. Based on comprehensive research of the S&P 500, HIP assesses and values measurable results over well-intentioned policies and philosophies, and shows how higher-performing companies can deliver both human impact and profit for shareholders. This HIP approach is shown to outperform the financial returns of the S&P benchmark in both up and down markets.
Written for investors of all types and their financial advisors, this detailed guide will help you construct a portfolio of firms that are boosting their bottom line by meeting five core human needs. Leading firms benefit customers, engage employees,¿and deliver sustainable, profitable growth for their investors through innovative products, measures, and decision making. Each chapter reveals a fundamentally strong analytical approach enriched with real-world case studies that show you how your portfolio can capture substantial financial returns and generate positive impact while also mitigating risks.
As a reliable resource for investors, The HIP Investor:
Provides a new set of questions and tools to build a solid HIP portfolio across all asset types, including stocks, bonds, and real estate
Outlines "the new fundamentals" of investing and how to perform a full quantitative assessment of a company's Human Impact + Profit potential
Highlights which companies in the S&P 500 are the most and least HIP, based on their products, metrics, and decision making
Shows you "how to be more HIP" in how you invest, where you work, and what you buy
And much more
If you're looking for a fundamentally strong, long-term systematic approach to your investments that can generate attractive profits for your portfolio while building a better world, this book has the tools you need to succeed. After reading The HIP Investor, you'll discover how to position your portfolio, your company, and your life for more Human Impact + Profit.
The HIP Investor introduces a revolutionairy system that allows investors to profit and make a socially responsible impact.The HIP approach, which values real, measurable results over policies or philosophies, shows that higher-performing companies can deliver both human impact and profit for shareholders. The book offers investors a new breed of investing- one that combines making money and doing good. It introduces a new way for investors to identify HIP companies and add them to their portfolios. Author Paul Herman's system has generated dramatic profits for followers. Since 2003, the HIP 100 Index(TM) has outperformed the cumulative return of the S&P 100 benchmark by nearly four times
This book will: Teach investors the three questions to ask when looking for a company to invest in. Demonstrate the financial case and abundant examples to support a HIP investment approach. Provide a compelling, easy to use investor tool-kit so that all investors can transform their portfolios and benefit from these impressive gains. Explain how five seemingly intractable world problems - health, wealth, earth, equality, trust can be profitably solved by companies and investors making informed decisions.
A new breed of investing that combines making more money and making a difference
First there were the "Profiteers," investors who sought to make money regardless of the cost to society. Then came the "Do-Gooders," investors who avoided "bad" companies and supported "good" ones, based on philosophy over financials. Now this book introduces a brand new breed of investor: The HIP Investor.
Written for those who want to profit handsomely while also building a better world, it will help you discover companies that are boosting the bottom line by solving key human needs through innovative products and services-benefiting customers, engaging employees, and delivering sustainable, profitable growth for their investors. That's the Human Impact + Profit, or HIP, approach.
In The HIP Investor, R. Paul Herman-creator of the HIP methodology-introduces a revolutionary system that allows investors to profit and make a positive impact. It values measurable results over policies and philosophies, and shows how higher-performing companies can deliver both human impact and profit for shareholders. This book
- Provides a compelling, easy to use "investor tool-kit" so you can quickly "HIP" your portfolio
- Reveals the three questions you should ask when looking for a company to invest in
- Illustrates how world problems can be solved for profit by companies and investors making informed decisions
You can make money while making a difference, and The HIP Investor is here to show you how.
Praise for THE HIP INVESTOR
"For investors and entrepreneurs seeking a positive global impact, the HIP approach provides a compelling architecture for realizing both impact and profit."—WILLIAM H. DRAPER IIIGeneral Partner, Draper Richards L.P.; Managing Director, Draper International; cofounder and Chairman, Draper Richards Foundation; founder, Sutter Hill Ventures
"Paul Herman has written a book that is powerful in that it describes a global economy increasingly driven by social, environmental, and human factors that affect everyday profits, and empowering because it provides a detailed road map for how you can participate in, and lead, this global transformation."—Nancy Pfund Managing Partner, DBL Investors; former Managing Director, J.P. Morgan
"The HIP Investor is a blueprint for Wall Street and Main Street investors to create positive human, social, and environmental results that lead to strong long-term investments."—Jim Moody, PhD, Economics former U.S. Congressman, Ways & Means Committee; Senior Financial Advisor of a major Wall Street firm; former CFO, Intl. Fund for Agricultural Development
"Service to people is the key to both profits and positive impact. Herman shows how investors can benefit by encouraging these two pursuits that naturally go together."—PROFESSOR IQBAL Z. QUADIRfounder and Director, Legatum Center for Development and Entrepreneurship at MIT; founder, Grameenphone
"With real insight and clarity, HIP's data-driven, results-based methodology makes the case for how we can and must begin to link impact and practices to profits. I expect that The HIP Investor will end up in the hands of every business school student interested in social enterprise and every conscious consumer."—Dr. CHERYL DORSEY, MD, MPP President, Echoing Green; founder, The Family Van health service; Vice Chair, President's Commission on White House Fellowships
"Herman delivers a powerful message: Societal value need not be sacrificed to create shareholder value. Better yet, enlightened managers and investors can create a virtuous cycle where social value drives shareholder wealth, and vice versa. Now that's a killer app!"—CHUNKA MUI Coauthor, Unleashing the Killer App and Billion Dollar Lessons; Managing Director, The Devil's Advocate Group
"It's my direct professional experience that extraordinary profits are realized when companies embed positive environmental and social benefits in their products and operations. Customers, employees, suppliers, shareholders, and society all do well in this HIP approach to business and investing."—KARYN BARSA CEO, Coyuchi; former CEO, Smith & Hawken; former COO and CFO, Patagonia
About the Author
R. PAUL HERMAN created the HIPSM methodology for investors worldwide to realize Human Impact + ProfitSM. Herman advises investors and manages portfolios (including the HIP 100 Index) using "The HIP ScorecardSM" featured in Fast Company magazine and at www.HIPinvestor.com. Herman's financial acumen was honed at the Wharton School and McKinsey & Co., and he accelerated social entrepreneurs at Ashoka.org and Omidyar Network. Herman advises leading corporations (including Walmart and Nike) and foundations on how to be more HIP. His insights have been quoted in the Wall Street Journal, Fortune, Forbes, BusinessWeek, and on CNN and CNBC.
Table of Contents
Disclosure and Disclaimer.
Introduction: The New Fundamentals – Build a Better World, Make Bigger Profits.
PART I Getting Ready for Your HIP Portfolio.
Chapter 1 The Importance of Human Impact to Investors.
Chapter 2 Assessing the Global Trends: Why HIP? Why Now?
PART II Researching Your HIP Portfolio.
Chapter 3 Bringing Products to Market That Solve A Human Need.
Chapter 4: Count the Quantifiable Human, Social and Environmental Impacts.
Chapter 5 Directly Embed HIP Criteria into Decision Making.
Chapter 6 Equating Impacts to Profit and Valuation.
PART III Designing Your HIP Portfolio.
Chapter 7 Framing Your Portfolio for Human Impact + Profit.
Chapter 8 Growing a HIP Approach into Your Entire Portfolio.
Chapter 9 How to Make a Future HIP World.
About the Author.