By Al Thomas
Recently we have been hearing more and more about investing in companies that are directly or indirectly related to the fresh water business. There are many types.
Common stocks, bonds, Exchange Traded Funds (ETFs) and mutual funds. Recent history shows many had there lows in 2009 as did the general stock market.
Can you make a fortune in these as the world runs out of fresh water? Well, maybe.
There are two factors that will give you a clue/
First: Do you have enough time to wait out the next 10 years.
Second: Are you willing to take a chance in some high risk companies.
The latter are those penny stocks that probably will go broke. This is for what I call “throw-away-money. It is not for trading like most penny stock crazies. This is for long term investing. Huh? You never heard of that for penny stocks? It might be a new idea.
The water category has the potential for huge profits because of world demographics. Over the next 10 to 20 years Earth could add 50% to its population. Every new Earthling needs water for drinking, cooking, agriculture, manufacturing, shelter, transportation, everything. New technologies must, that’s MUST, be developed if the newbies plan to live here.
Water technology will be the next big thing.
Here is my investment scenario that has the potential to make a lot of money – way out there in the future. New companies are being created every year that have some connection with water. Some of these offerings sell for less than $1.00/share and many for 10 and 20 cents, even less. The investor can allocate a certain amount, say $100, and get as many shares as that will buy. It could be a few hundred to more than a thousand. (Ask for delivery of the stock certificates and make several copies to put in different places.) Then put them away for the next 10 years for yourself or the kids.
My guess is that about one out of seven will do exceptionally well. Who knows? You might have an IBM or a Berkshire Hathaway. The rest could be a total loss. So Mr. Crazy Shooter Investor put in $700 over the next few years. Maybe, maybe again, number seven is worth $7,000 or a lot more. This is a crap shoot, but not one that will break the bank.
The buyer of these issues pays no attention to the hype. It is like gold I recommended in my book in 2003. At that time gold was $300. It went to $1900 and today is about $1200. Don’t ask me where it will be in another 10 years.
These cheapies can be found on the Internet or with a subscription to one of the penny stock publications. They want you to trade. You don’t.
Let me know how you did – in 10 years.
Al Thomas' new book, "If It Doesn't Go Up, Don't Buy It!",3rd edition,has helped thousands of people make money and keep their profits with his simple 2-step method.The method made 10% during 2008.Read the first chapter at http://www.mutualfundmagic.com and discover why he's the man that Wall Street does not want you to know. Copyright 2014 Williamsburg Investment Co. All rights reserved.