Earlier this week, Warren Buffet made an environmentalist’s dream investment. Buffet, via his investment vehicle, bought the remaining 77.4% of Burlington Northern Santa Fe (BNSF) railway for the cool cost of $40 billion with cash, stock and debt included.
Buffet made the investment because "railroad operators cannot do well unless American businesses were producing goods and customers were buying them." But this is also a fantastic investment in the future of green travel for America. BSNF is the second largest transcontinental railroad in the country, and hopes are that Buffet will transform it into a passenger railroad.

Don’t have $44 billion laying around the seat cushions to put into the market? There are still ways to put your green where your mouth is.

First, think about your financial priorities. Do you want your investments to reduce your eco impact, promote renewable energy, support green technology, or help local businesses? Which eco or social practices are most important to you? It is difficult to find a company that is 100% environmentally friendly – so consider companies that are taking the best steps towards sustainability.

You can also choose different green investment sectors. These include renewable energy, organic and natural goods, pollutions controls and environmental cleanup. Experts advise diversification, which is key to a successful investment strategy. In such a volatile investment climate, you need to protect your funds and bolster multiple environmental sectors.

Watch out for greenwashers. Quite simply, greenwashed companies may use one environmentally-friendly practice, but treat the rest of their business plan like the earth is their personal garbage bag. For an idea of the top greenwashed companies out there, check out this list from the Huffington Post. Further, many companies post their corporate social responsibility report, or CSRs, on their web sites. Be sure to check them out before you dedicate your money to supporting their cause.

Consider green indexes and green stock lists. Try the DOW Jones Sustainability Index. This tracks the performance of the largest sustainability leaders in the United States. You can also try EcoBusiness Links to Green Energy Stocks. Also, you will want to stay informed on the latest information coming out of the green sector. Greenchipstocks.com is a great way to stay on top of the news.  (Want information on wind energy? We have a great guide to figuring out which wind stocks work best for your portfolio.) 

If you don't want to do a lot of research, trading, and risk assessment, consider investing in green indexes, clubs, or funds. They can do all that do all that for you. Consider an investment company that only invests in socially-responsible companies. Sentinel Investments makes it a point to invest in companies that “demonstrate sound and ethical business practices.”

According to the Social Investment Forum's 2007 Report on Socially Responsible Investing Trends in the U.S., “SRI assets increased more than 18 percent while the broader universe of professionally managed assets increased less than 3 percent. The study also cites that more than 11 percent of assets under professional management are invested using SRI investment strategies.”

And finally, you can also invest your green outside of the stock market. Consider green bonds, green savings accounts, green money market accounts, and green certificates of deposits. Bonds are essentially small units of government debt that pay interest. Green savings accounts work just like regular bank accounts. Money market accounts are like bank accounts, but they offer higher interest rates. They often require a higher minimum investment balance and are limited to a certain number of withdrawals a month. Green certificates of deposit (or CDs) are investments for a predetermined time, between a month and 5 years, with a fixed interest rate. But they often incur high penalties for early withdraws.

Note: This content is intended for use as a source of general information only. This information should not be taken as financial advice or seen as an endorsement or recommendation of any particular company, investment, investment strategy or individual. Greenopia does not endorse any stocks in this guide and is not in the business of providing financial advice. Consumers should assess their own risk levels and seek professional advice before making investment decisions.