3 ms·
> invest in renewable energy and related sectors Isn't the problem in investing in that that there's really no way to know which particular business will come
by worldsayshi 9y ago
> invest in renewable energy and related sectors
Isn't the problem in investing in that that there's really no way to know which particular business will come out on top here since there really isn't any large barriers of entry?
- KozmoNau7 9y agoYes, and that's the trick (plus luck).
- vasco 9y agoThat's what hedging is for, you bet that for example, in the overall energy landscape, renewals are going to go up more than "legacy" energy companies, but still protect yourself from overall sector moves.
- worldsayshi 9y agoAh, thanks for that explanation! I wasn't aware of what the hedge part meant. But now I could connect it to an idea.
- heurist 9y agoIf you don't follow the industry there are indexes and funds available for this stock. All you need to do is find the right ones and you'll be mostly insured from any individual company failure. There's a lot of money in oil that will be captured by the 'free' energy of renewables. Renewables are just now becoming more cost effective than oil. Oil will be around for a long time but renewables are poised to overtake it in consumer and commercial energy. Might take a few decades but it's inevitable that a vastly more efficient energy source becomes the market leader. Also, governments across the world are putting in place regulations to build and retrofit buildings to reduce emissions. That's not just energy, it's the actual building materials and techniques. That's a lot of government mandated money about to be put into green infrastructure. Again, this is over decades so the ramp time will seem slow to us humans but now is the time to get in IMO. However, I am an amateur investor and I've definitely been wrong before...