Climate Change?

[james.hendrickson]

Hi Guys,

My brother works for the endowment of a large educational foundation in Hawaii.

One of the questions his company has been looking at is the impact of climate change on their endowment's real estate and stock portfolio.

He did a comprehensive look at what real estate and securities they owned and concluded that, if the worst projections for climate change come true, their oceanfront properties in Oahu would become liabilities.

So here is my question: are you guys worried about the impact of climate change on your finances? Or is it a non-issue?

[Spiffster]

The companies that will be most effected by climate change will be insurance companies... which is why they take climate change very seriously. While I think alarmists (like Al Gore) can be mostly ignored, climate change is very real.

[disneysteve]

I'm a firm believer that climate change is real and that human actions impact it but I'm not the least bit concerned about how it will affect my finances. I don't think anything is going to happen soon enough to affect me.

That said, however, the one thing that could directly affect us would be increased frequency and intensity of tropical storms. We thankfully fared well in Sandy but many of our friends in the area did not.

But no, climate change is not a factor in any of my financial decisions.

[bjl584]

No. I don't own any real estate or other hard assets on the coastlines or in other areas that could be impacted by a dramatic change in climate.

All of the stocks and holdings that I own do business all over the world, so a change in climate wouldn't impact them significantly as far as I can foresee.

[kork13]

I agree that the alarmists can typically be ignored. Climate change is certainly 'a thing' -- it has been throughout earth's history. I just don't entirely buy in to the degree of influence that people claim humans are having. But that's a different discussion (and typically, a highly charged one) that we probably shouldn't launch into again...

So for the purposes of this topic... No, I'm not concerned with climate change impacting my finances. Frankly, I don't think oceanfront properties have a significantly higher than average risk for the immediate future either. Climate change is a slow process. Yes, we're in a warming trend. That means that oceans will rise somewhat, and typhoons/hurricanes may be more common or more powerful. But over the course of 20-30 years, or even approaching a century, overall average sea levels don't rise/fall fast enough to drive a sudden need for a dramatic shift in finances. Hurricanes happen, and the seas rise & fall. Prepare for it, and take appropriate steps to protect assets against known threats. For example, a home in a hurricane zone should be built out of concrete not wood (I really wish Florida & the Gulf Coast would learn this), and on stilts/pillars if storm surge is common.

If I were running your brother's company, I'd be of the "wait and see" mindset. If for some reason environmental factors actually become a quantifiable liability (for example, a series of hurricanes over 5 years has dragged on profits by X% because of XXXX damage/repairs/costs not covered by insurance), then you can make changes. But until then, I don't see it as necessary.

[greenskeeper]

non-issue

https://www.youtube.com/watch?v=rld0KDcan_w

[TexasHusker]

Hi Guys,

My brother works for the endowment of a large educational foundation in Hawaii.

One of the questions his company has been looking at is the impact of climate change on their endowment's real estate and stock portfolio.

He did a comprehensive look at what real estate and securities they owned and concluded that, if the worst projections for climate change come true, their oceanfront properties in Oahu would become liabilities.

So here is my question: are you guys worried about the impact of climate change on your finances? Or is it a non-issue?

You bet I’m worried. Worried that the libs are going to drive this country into bankruptcy by permanently shoveling out dump trucks of cash from the treasury for clunkers, solar panels, and electric cars.

[rennigade]

Am I worried about climate change affecting my investments...nope.

Am I worried about climate change in general...sure.

I think the bigger thing to worry about is environmental pollution. You can see what deregulation leads to...just head to china on a hot and smoggy day and try to breathe. Thats real stuff and no one seems to worry about that which is odd.

[Nutria]

Thats real stuff and no one seems to worry about that which is odd.

But they do...

https://www.joc.com/regulation-policy/transportation-regulations/china-closes-down-thousands-factories_20170906.html

[james.hendrickson]

You bet I’m worried. Worried that the libs are going to drive this country into bankruptcy by permanently shoveling out dump trucks of cash from the treasury for clunkers, solar panels, and electric cars.

Texas, broader policy issues aside, are you planning on changing your investing strategy?

[TexasHusker]

Texas, broader policy issues aside, are you planning on changing your investing strategy?

I’m being facetious. Partly.

Climate change isn’t affecting any part of my life, including investments.

The media generally likes to manufacture crises when things are slow.

It’s all just a daily game.