Once again, why fossil fuels are on the wrong side of history

By | February 4, 2020

Jim Cramer writes:

Tesla plus 80, Exxon Mobil minus a dollar and a half.

On a huge up day, doesn’t that say it all?

I’ve gotten a lot of blowback about my stand on fossil fuels. It’s been roundly criticized by many even as so many others are grateful for my new stand.

The funny thing is that the stance itself is often poorly described by others so let’s unpack my comments.

First, I have spent a great deal of time in the last couple of years trying to pivot my focus to more social issues. I call it impact per share. Sustainability, the planet as a stakeholder, reducing carbon footprint and the like. I have consistently strived to ask CEOs on Mad Money and Squawk on the Street about what their companies are doing to combat greenhouse gases, to change patterns into more energy efficient ways and to make sure that they know we care about these things, we being what the viewers have made clear matters to them.

Sure the president may not share my views. That is not of consequence to me. What matters is that CEOs know that many will not buy their stocks unless they take sustainability seriously. Many investors, both old and young, but particularly young – both homegamers and portfolio managers – need to hear the company’s stance on these issues and if it is wanting in their eyes they might sell the stock.

Its gotten to the point that Larry Fink, the CEO of BlackRock, one of the largest money managers on Earth, has said that these concerns are now paramount in stock selection. He’s got huge holdings in oil and gas. He’s talking about divesting any company that makes more than 25% of its revenue from thermal coal, a big greenhouse gas emitter.

I don’t think people realized the seriousness of this pronouncement. No one in this investment firmament carries as much sway as Larry Fink, including the Oracle of Omaha, Warren Buffett. [Continue reading…]

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