OK so I am DEFINITELY not the next Warren Buffett. However, I feel pretty smart for having liquidated some poorly performing mutual funds in my 401k account about 5 months ago and using the money ($400) to invest in some 25 shares of General Electric (when it was at $3.56 a share) as well as 100 shares of AIG (when it was 44 cents a share). I also bought 10 shares of a stem cell research company as I figured that was a sector sure to grow in the future. Today, my $400 investment into these stocks is worth almost $2000, five short months later. I bought these things at the bottom of the market when everyone had been selling furiously. And it got me thinking about where the next “big” investment sector would be found. I think green energy is it.
Now I wasn’t smart enough (and I also was dead broke) when the Tech boom started so I didn’t buy Google stock for pennies when it first went public. Not that I have so much extra money now to invest either. But, what I do have, is the perspective of a fellow who has been around long enough to see that a great deal of money can be made by investing ahead of the curve in areas where furious growth hasn’t yet taken place. Today, Google is trading over $500 a share. So obviously, its way past time to make a killing owning it. But I have a theory.
You see, we can wage wars, killing each other over oil. We can keep destroying the environment for the time being by burning fossil fuels for transportation, heating, electricity, etc. But one thing is unavoidable. Whether it is that we run out of fossil fuels or that we damage the environment so badly that we cannot conscion using whatever oil is left, we WILL reach the point when alternative energy is the ONLY option. I am betting that it happens sooner rather than later too. Right now the US is lagging countries in Europe and Asia in investment into renewable energy production from things like wind and solar. I think the companies that are doing this kind of research now are available for affordable prices. Not if but WHEN the world turns from fossil fuels to wind or solar, those companys’ stocks are going to soar. I feel like it is a very wise idea (for me anyway, no investment advice implied) to slowly park some money in some of these emerging energy companies. Anybody have any stock suggestions for promising alternative energy companies? I’d be happy for some good info on companies with promising green energy prospects. Any other armchair investment gurus out there?