R. Paul Herman 
The HIP Investor 
Make Bigger Profits by Building a Better World

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.

Table of Content

Disclosure and Disclaimer xi

Introduction: The New Fundamentals–Build a Better World, Make Bigger Profits xiii

Part I Getting Ready for Your HIP Portfolio

Chapter 1 The Importance of Human Impact to Investors 3

Chapter 2 Assessing the Global Trends: Why HIP and Why Now? 17

Part II Researching Your HIP Portfolio

Chapter 3 Bringing Products to Market that Solve a Human Need 37

Chapter 4 Count the Quantifiable Human, Social, and Environmental Impacts 59

Chapter 5 Directly Embed HIP Criteria into Decision Making 115

Chapter 6 Equate Impacts to Profit and Valuation 143

Part III Designing Your HIP Portfolio

Chapter 7 Framing Your Portfolio for Human Impact + Profit 185

Chapter 8 Growing a HIP Approach Into Your Entire Portfolio 219

Chapter 9 How to Make a Future HIP World 249

Bibliography 269

Acknowledgments 305

About the Author 309

Index 311

About the author

R. PAUL HERMAN created the HIP¯SM methodology for investors worldwide to realize Human Impact + Profit¯SM. Herman advises investors and manages portfolios (including the HIP 100 Index) using ‘The HIP Scorecard¯SM’ featured in Fast Company magazine and at www.HIPinvestor.com. Herman’s financial acumen was honed at the Wharton School and Mc Kinsey & 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, Business Week, and on CNN and CNBC.